The Enforcement Directorate (ED), on May 14, 2019, in a statement, said that it has ‘provisionally attached immovable properties, comprising commercially diverted land of 2,70,374 sq ft along with a shopping mall in Nagpur worth Rs 483 crores of KSL and Industries Ltd, Mumbai, under the Prevention of Money Laundering Act (PMLA) in a bank fraud case’. “KSL and Industries Ltd is one of the group companies of the Tayal Group of Companies,” it said.
It said the Group and its four firms, including KSL and Industries, had availed of loans of Rs 524 crores from the Bank of India and Andhra Bank in 2008, which was allegedly defrauded by it, by using a ‘maze of shell or illegal companies’. This is the second PMLA case against the Tayal Group, as it was already being probed by the agency for alleged loan fraud against UCO Bank and assets worth Rs 234 crores of the business group were attached by it in 2016.
The agency has also filed a charge sheet in the UCO Bank case, before a special PMLA court in Kolkata. “The agency has been able to recover almost the entire amount of loan fraud through these attachments, which will now face judicial scrutiny. The role of bank officials in the second case is under probe,” a senior official said. The ED had taken over the case against the Kolkata-based group, on the basis of three CBI FIRs in this instance.
“During the investigation, it was revealed that the said companies under the umbrella of Tayal Group of Companies, represented by promoter Praveen Kumar Tayal, were involved in large-scale fraud, perpetrated on several nationalised banks across the country. It came to light that funds received from banks by the said Tayal Group of Companies for specific purpose, were siphoned off through a maze of fictitious companies and from there, to unknown destinations,” the ED had earlier said.
From the trail of funds, it is abundantly clear that the said funds were laundered through its group companies, it said. “Nevertheless, the said Tayal Group of Companies, despite having a large amount of liabilities to banks, acquired a number of properties and also placed huge amounts in bank accounts, which are believed to represent value of proceeds of crime,” it said in 2016, while describing the modus operandi of the alleged fraud.