Loan fraud: ED restores Rs 1.44 crore seized properties to Bank of India

Shimla, Jan 8 (LatestNewsX) The Enforcement Directorate (ED), Shimla, has restituted proceeds of crime in the form of immovable properties valued at Rs 1.44 crore to the Bank of India in connection with a loan fraud case involving a private company, an official said on Thursday.

In a statement, the ED said the restitution relates to a bank fraud case involving Arvind Casting, in which loans were allegedly obtained using forged documents and subsequently defaulted upon.

The action was taken to restore the proceeds of crime to one of the victim banks, the ED said.

The ED initiated its investigation on the basis of FIR No. 92 dated May 19, 2014, registered at Haroli Police Station in Una district of Himachal Pradesh under various sections of the Indian Penal Code, 1860.

The FIR was registered against Arvind Casting and others on allegations of fraudulently obtaining loans from financial institutions by creating fake and forged documents and failing to repay the sanctioned amounts, the agency said.

The ED investigation revealed that Arvind Casting and other accused had obtained credit facilities in 2014 through misrepresentation and the use of forged documents. The loan amounts were allegedly diverted to related entities instead of being utilised for the sanctioned purposes, resulting in wrongful loss to the lending institutions.

Earlier in the case, the ED had provisionally attached properties worth approximately Rs 3.51 crore. These provisional attachment orders were subsequently confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA).

The agency later filed a prosecution complaint before the Special Judge (PMLA), Dharamshala, on June 15, 2020. The court took cognisance of the complaint on March 1, 2021.

Keeping in view the objective of the PMLA, 2002, particularly the restitution of proceeds of crime to bona fide and legitimate claimants and victims of money laundering, the ED submitted a no-objection before the Special Judge (PMLA), Dharamshala, seeking the release of a portion of the attached immovable properties in favour of the Bank of India.

Based on the ED’s submission, the Special Judge (PMLA) passed an order on January 6, 2026, directing the restitution of immovable properties valued at Rs 1.44 crore to the Bank of India.

rch/pgh