The Enforcement Directorate (ED) conducted sweeping searches across Tamil Nadu, West Bengal, and Goa on Tuesday, targeting Chennai-based Arvind Remedies and its promoter, Arvind B. Shah, in a high-profile money laundering investigation linked to a ₹637 crore bank loan fraud. The raids, carried out under the Prevention of Money Laundering Act (PMLA), focused on locations in Chennai, Kanchipuram, Kolkata, and parts of Goa, as the agency seeks to unravel a complex web of financial misconduct.

The probe originates from an October 2016 Central Bureau of Investigation (CBI) First Information Report (FIR) accusing Arvind Remedies and Shah of defrauding a consortium of lenders, led by Punjab National Bank (PNB), to the tune of ₹637 crore. The ED’s investigation has meticulously analyzed the company’s annual reports from 2009-10 to 2014-15, audited financials sourced from the Ministry of Corporate Affairs, and transactions across 294 bank accounts. Preliminary findings reveal that funds were allegedly siphoned off through a network of shell companies controlled by the promoters, diverting public money for personal gain.

The raids aim to seize incriminating documents, digital devices, and assets linked to the proceeds of crime, as the ED intensifies its efforts to trace the money trail. Sources indicate that the agency has uncovered evidence of sophisticated financial maneuvers, with dummy entities used to obscure the flow of funds, a tactic commonly employed in large-scale bank frauds.

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This case adds to the ED’s ongoing crackdown on financial crimes, with the agency having investigated over 1,160 money-laundering cases linked to bank frauds, impounding assets worth ₹65,279 crore in recent years. The Arvind Remedies probe underscores the agency’s focus on dismantling networks that exploit banking systems, often leaving public sector banks with significant losses.

As the investigation unfolds, the ED is expected to summon key individuals for questioning and may attach properties acquired through illicit means. The raids signal a broader effort to hold corporate entities accountable and recover defrauded funds, sending a strong message to those orchestrating financial scams across India.

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