Indian Technomac Bank Fraud: ED Restores Properties Worth Rs289 Crore to Bank of India-led Consortium
Moneylife Digital Team 07 April 2025
In a significant development aimed at returning ill-gotten gains to their rightful owners, the Shimla office of the directorate of enforcement (ED) has restituted properties worth approximately Rs289 crore to a consortium of banks led by Bank of India in connection with the high-profile Indian Technomac Company Ltd (ITCOL) fraud case.
 
ED's Shimla office led the probe into the alleged money laundering and loan fraud by ITCOL and its promoters. The investigation stemmed from a first information report (FIR) registered by the Himachal Pradesh police's crime investigation department (CID) which accused the company's directors of colluding with company officials and chartered accountants to siphon off bank loans fraudulently.
 
According to ED, ITCOL secured loans between 2009 and 2013 from a consortium of banks by submitting forged project reports and generating fictitious sales through dummy and shell companies. The funds, which were sanctioned for specific projects, were allegedly misused for other purposes.
 
Following its investigation under the Prevention of Money Laundering Act (PMLA), ED issued a provisional attachment order in 2019, seizing assets worth Rs289 crore. These included immovable properties—land parcels in Sirmaur, Himachal Pradesh, and Hauz Khas, New Delhi—valued at Rs190.95 crore, and movable assets—mainly plant and machinery located in Sirmaur—worth Rs97.96 crore.
 
In line with the PMLA's objective of restoring proceeds of crime to legitimate victims, ED submitted a no-objection request to the special PMLA court in Shimla to release the attached properties to the affected banks. The court accepted the submission and passed an order allowing the restitution of the attached properties to the Bank of India-led consortium.
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