ED attaches properties worth Rs 204cr of city-based firm

Ahmedabad: The state zonal office of Enforcement Directorate (ED) attached 25-plus assets worth Rs 204.27 crore of a firm having its headquarters in Ahmedabad. The Ardor Group of Companies is already facing a CBI inquiry.

Sources said that the attachment is in connection with a money laundering probe and alleged bank fraud case.

The attachment of properties in Ahmedabad and Surat was carried out under provisions of the Prevention of Money Laundering Act (PMLA). The firm and its directors are being probed for allegedly cheating a consortium of banks, led by Bank of India, for over Rs 480 crore.

‘The properties attached include a commercial office on SG Road, a residential plot in Satellite, five housing plots in Ambli, 17 plots in Gokul Dham scheme, four shops in Bodakdev and offices in Ellisbridge and Ashram Road. A non-agricultural land is attached in Surat also,’ mentioned a statement from ED, adding that the properties are considered to be proceeds of the alleged crime.

The central agency booked Ardor Group of Companies and its directors under the PMLA after studying six CBI FIRs filed against them. The CBI FIRs said the directors ‘in connivance with unknown bank officials have cheated and caused wrongful loss to the consortium of banks (led by Bank of India) amounting to Rs 488 crore.’

The ED said Bharat Shah, Fenil Shah and Geetaben Shah were the directors of Ardor International Ltd, Ardor Global Pvt Ltd and Chem Edge International Pvt Ltd and they ‘indulged in circular routing of funds received out of credit limit sanctioned by the consortium of banks to inflate the financials of the companies for increasing the credit facilities.’