There is no mercy for those who take loan from the bank and do not repay it, ED returned property worth Rs 185 crore to the banks

The crackdown on those who take loans from banks and do not repay them has increased. The Enforcement Directorate (ED) is returning the loans to the banks by confiscating their assets. The Enforcement Directorate (ED) said on Wednesday that it has ‘returned’ assets worth more than Rs 185 crore to a group of banks led by the State Bank of India (SBI). In this case, a Chandigarh-based pharmaceutical company had allegedly committed fraud through loan fraud. This case is related to Surya Pharmaceutical Ltd. The company is currently undergoing a liquidation process. Its directors and promoters include Rajiv Goyal and Alka Goyal. These people caused a ‘loss’ of Rs 828.50 crore to the banks by committing fraud. 

took loan using fake documents 

The ED registered a criminal case against the accused company and its promoters taking cognizance of the CBI FIR. The agency said in a statement that the company obtained loans using fake documents. Fake documents such as invoices, transportation details, freight receipts, etc. were used for issuing inland letters of credit (ILC). Later, Surya Pharmaceuticals siphoned off the money using group companies and shell units. According to the statement, this caused a loss of Rs 828.50 crore to the SBI-led consortium of banks. After carrying out this alleged fraud, the promoters (Rajiv Goyal and Alka Goyal) fled the country. A Chandigarh court declared them ‘fugitive offenders’ on July 10, 2017. The ED started its investigation and in October 2022, attached movable and immovable assets of the accused worth Rs 185.13 crore. The investigating agency filed a chargesheet in the case on April 4. 

Help received from NCLT. 

The investigating agency said it held meetings with the concerned banks and the liquidator appointed by the National Company Law Tribunal (NCLT) in the case and helped them file a petition before the special court for the return of the banks’ properties. The court passed an order on October 25, allowing the consortium of lending banks to return the attached properties through the official liquidator as the accused were declared ‘fugitive offenders’ as per Section 8 (7) of the PMLA, the agency said.