The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has filed a prosecution complaint under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a bank fraud case involving M/s Shree Om Fab and others, officials said.
The ED began its probe based on an FIR registered by the Central Bureau of Investigation (CBI) against M/s Shree Om Fab (proprietor Ranjit Loonia) and others, following a complaint by Oriental Bank of Commerce. The CBI later filed a charge sheet in the case on December 16, 2019.
Investigations revealed that M/s Shree Om Fab, M/s Shree Baba Textile and M/s Shree Laxmi Fab — all proprietorship firms of Ranjit Loonia — were sanctioned credit facilities worth ₹9.95 crore, which later rose to around ₹10.9 crore, including interest, by the time the account turned NPA.
The probe found that Loonia allegedly conspired with panel valuer Mayur Shah and others by submitting fake business records and forged documents, and by arranging inflated valuation reports of mortgaged properties to secure higher loan limits.
According to the ED, the accused diverted the cash-credit funds instead of using them for legitimate business activities. The money was allegedly routed through multiple bank accounts without genuine transactions, withdrawn in cash, used to purchase bullion, and also diverted towards repayment of personal housing loans.
Earlier, the ED had carried out searches at the premises of the accused, recovering valuables worth about ₹3.67 crore.
The agency also provisionally attached two immovable properties valued at ₹53.50 lakh (with a current market value of around ₹4.65 crore) in the names of the accused.
Further investigation in the case is underway, officials said.