Pratibha Industries' Rs4,957 Crore Bank Fraud: ED Attaches Promoter Ajit Kulkarni's Properties Worth Rs24.52 Crore
Moneylife Digital Team 20 February 2025
The Mumbai zonal office of the directorate of enforcement (ED) has provisionally attached immovable properties worth Rs24.52 crore belonging to Ajit Kulkarni and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the bank fraud case involving Pratibha Industries Ltd. Mr Kulkarni is the promoter of Pratibha Industries. 
 
ED initiated its investigation based on a first information report (FIR) registered by central bureau of investigation (CBI) in January 2023 against Pratibha Industries, Mr Kulkarni and others. The case was lodged following a complaint by the Bank of Baroda which alleged that the company defrauded a consortium of banks to the tune of Rs4,957 crore.
 
Investigations revealed that the directors of Pratibha Industries engaged in a criminal conspiracy to cause financial losses to the banks while securing undue gains for themselves. The fraudulent scheme involved diverting loan funds through manipulated financial transactions. The accused used various accommodation entry providers to facilitate circular trading, laundering the proceeds of crime (POC). These misappropriated funds were subsequently used to purchase immovable assets through third-party transactions.
 
As part of its crackdown, ED had earlier conducted search operations on 2 January 2025 at 14 different locations across Mumbai and Delhi under the provisions of the PMLA, 2002. These searches led to the freezing of bank balances and mutual funds amounting to Rs5.4 crore. Additionally, investigators uncovered incriminating evidence linked to the purchase of immovable properties.
 
Further investigations into the case are ongoing and additional assets may be identified and attached in due course, ED says.
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