ED Raids Six Locations in Chennai and Tiruppur Over IOB Bank Fraud Case

Chennai, September 21 (Daily Kiran) : The Enforcement Directorate (ED) has launched a significant operation in Chennai and Tiruppur, targeting six residential and commercial properties linked to a bank fraud and money laundering case. This action is part of an ongoing investigation under the Prevention of Money Laundering Act of 2002, focusing on PGC Corporation Limited and other involved parties.The ED initiated this investigation based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) and the Economic Offences Wing (EOW) in Chennai. The FIR includes various charges under multiple sections and provisions of the Prevention of Corruption Act, 1988. Allegations suggest that directors of PGC Corporation Limited, including D. Prem, Aditya D. Vikram, and K. Kalaiswaran, along with some unidentified government officials and private individuals, defrauded the Indian Overseas Bank of approximately ₹116.79 crores.According to the ED, PGC Corporation Limited obtained various loan facilities from the bank, which classified the company’s account as a non-performing asset (NPA) in 2013 and later categorized it as a fraud account in 2020. The investigation reveals that the company allegedly submitted false and manipulated financial statements to secure additional credit facilities for the fiscal year 2011-12. The agency claims that funds obtained from these loans were misappropriated, with portions transferred to personal bank accounts and foreign companies.The ED has also uncovered evidence of alleged "round-tripping" of these funds. Further findings indicate that D. Prem and Aditya D. Vikram established a network of companies and firms, both domestically and internationally, through which the loan amounts were redirected as investments. A significant portion of the funds sent abroad was later returned to India for local business expenses. The investigation also revealed that after the bank began recovery efforts, PGC Corporation Limited sold inventory worth approximately ₹235 crores to related companies.During the raids, the ED discovered evidence of the accused's lavish lifestyles, including properties and assets registered under the names of their spouses and relatives. Additionally, the accused reportedly initiated new businesses under the names of their spouses and employees, while maintaining actual control over these operations. The ED seized approximately ₹82 lakhs in unaccounted cash, two luxury vehicles, laptops, pen drives, mobile phones, property-related documents, and other incriminating materials during the raids.The investigation is ongoing.