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Nagpur: The Enforcement Directorate (ED) announced on Thursday that it has arrested Abhay Narendra Lodha, the promoter and Managing Director of a Mumbai-registered steel and power company, in connection with a money laundering case associated with an alleged bank fraud.
Lodha was taken into custody on Wednesday, and a special Prevention of Money Laundering Act (PMLA) court subsequently remanded him to ED custody until September 8. This development comes as a significant development in the ongoing investigation into financial irregularities.
According to ED statement, Abhay Narendra Lodha held the position of promoter and Managing Director of Topworth Steels and Power Private Limited (TSPPL) and the Topworth Group. TSPPL is a Mumbai-registered company with its plant located in Chhattisgarh’s Durg district. It is pertinent to note that the company is currently undergoing Corporate Insolvency Resolution Process (CIRP).
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The Enforcement Directorate, based on its investigation, alleged that Abhay Narendra Lodha and the Topworth Group were involved in causing a wrongful loss of Rs 63.10 crore to IDBI Bank. This loss was incurred through fraudulent activities related to the credit facility of the Letter of Credit and Trade Credit Bank Guarantee (LC/TCBG) during the period from 2014-15 to 2016-17.
Furthermore, the ED claims that the Topworth Group of companies, under the control of Abhay Narendra Lodha, generated proceeds of crime amounting to Rs 3,000 crore. These illicit funds were allegedly funnelled through the Topworth Group and its connected entities.
The roots of the money laundering case by the Enforcement Directorate can be traced back to a Central Bureau of Investigation (CBI) FIR. Prior to the arrest, the anti-money laundering agency had conducted searches at 12 different premises located in Nagpur, Mumbai, Pune, Durg, and Delhi. During these searches, details regarding ownership of various immovable properties and undisclosed companies, both within India and overseas, were reportedly unearthed.
The arrest and ongoing investigation signify a significant step in unravelling the alleged financial improprieties connected to the Topworth Group of companies and Abhay Narendra Lodha.
