CHENNAI: The investigation in the Rs 637 crore loan fraud case involving Chennai-based Arvind Remedies is expected to continue as authorities analyse the seized documents and digital evidence. The Enforcement Directorate (ED) has in the last two days carried out searches in Tamil Nadu, West Bengal, and Goa as part of its probe into a bank fraud linked to the company and its promoter Arvind B. Shah.
The case dates back to 2016, when the CBI registered an FIR following a complaint from Punjab National Bank. The company is accused of defrauding a consortium of lenders by diverting loan funds and falsifying accounts.
The ED raids are aimed at unravelling the underlying financial trail and identifying those responsible for manipulating company accounts, misappropriating funds, and laundering money through a complex web of interconnected entities.
According to investigators, quoted in reports, the promoters routed money through shell companies and multiple bank accounts. The ED examined financial statements between 2009 and 2015 and transaction details from nearly 300 accounts.
The raids are aimed at tracing the flow of funds and collecting evidence of money laundering. Officials said further action will follow once documents and digital records seized during the searches are analyzed.
The ED’s current probe has involved a deep dive into the company’s annual reports from fiscal years 2009–10 through 2014–15, audited financial statements obtained from the Ministry of Corporate Affairs, and extensive transaction data spanning 294 bank accounts.
Analysis suggests that funds were siphoned off through shell or dummy entities controlled by the promoters—raising serious concerns of financial misconduct and money laundering.
The Chennai-based Arvind Remedies Ltd, was engaged in the manufacture of generic medicines and ayurvedic products. The company was promoted by Arvind B. Shah and once had a strong presence in both domestic and export markets.
In 2015, the company faced severe financial stress and was admitted to corporate debt restructuring. It eventually went into liquidation after failing to repay loans to a consortium of banks led by Punjab National Bank.
In 2016, the CBI registered a case against the company and its promoter for allegedly defrauding lenders of about Rs 637 crore by diverting loan funds and falsifying accounts. The Enforcement Directorate later launched a parallel probe under the Prevention of Money Laundering Act, leading to the recent raids.