ED Attaches ₹9.19 Crore Assets In Sayona Colors Bank Fraud Case

The Enforcement Directorate (ED) has provisionally attached movable and immovable properties worth ₹9.19 crore in connection with a bank fraud case involving Sayona Colors Pvt Ltd and others.

The case alleges that loan funds were diverted to promoters and group companies through bogus agreements and circular transactions. The latest attachment includes four agricultural land parcels, term deposits, two industrial land parcels, a residential flat, and equity shares held in two demat accounts.

The ED said the properties were identified as proceeds of crime generated from the alleged diversion and misuse of bank funds. The attachment, made under the Prevention of Money Laundering Act (PMLA), takes the total value of assets attached in the case to ₹9.62 crore.

The ED's Ahmedabad Zonal Office initiated the money-laundering investigation on the basis of an FIR registered by the CBI's Banking Securities and Fraud Branch (BS&FB), Mumbai, against Sayona Colors, its director Paresh D Patel, Shamrock Chemie Pvt Ltd, its directors, and others.

According to the ED, the accused allegedly defrauded banks of ₹71.88 crore by diverting loan funds to sister concerns through bogus agreements and circular transactions, allegedly to secure higher credit limits. The investigation found that Sayona Colors allegedly used the loan funds to acquire properties in the names of its promoters and group entities.

The funds were also allegedly transferred to group companies, either directly or through the misuse of Letter of Credit (LC) facilities. The agency further alleged that Sayona Colors and Shamrock Chemie routed funds among themselves and other group entities through circular transactions.

Such transactions, the ED alleged, were used to create an inflated financial picture and induce banks to enhance the credit facilities extended to the companies. This is the second provisional attachment order issued by the agency in the case.

The ED's investigation is ongoing, and the agency is working to uncover the full extent of the alleged fraud. The case highlights the need for increased vigilance and oversight in the banking sector to prevent such fraudulent activities.

The attachment of assets is a significant step in the investigation, as it prevents the accused from accessing or disposing of the properties. The ED will continue to work to bring those responsible for the alleged fraud to justice.

The case has significant implications for the banking sector and highlights the need for stricter regulations and oversight to prevent such fraudulent activities. The ED's investigation is a step in the right direction, and the agency will continue to work to protect the interests of the banking sector and the public.

In conclusion, the ED's attachment of assets in the Sayona Colors bank fraud case is a significant development in the investigation. The case highlights the need for increased vigilance and oversight in the banking sector and the importance of protecting the interests of the public.