Chennai Pharma Firm Under ED Net in Rs 637 Crore Bank Fraud Case

Published On 2025-09-21 10:30 GMT   |   Update On 2025-09-21 10:31 GMT
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Chennai: The Enforcement Directorate (ED) has launched multi-state raids across Tamil Nadu, West Bengal, and Goa, targeting Chennai-based pharmaceutical company Arvind Remedies and its promoter Arvind B. Shah in connection with a Rs 637 crore bank loan fraud.

The action comes as part of an ongoing money laundering investigation under the Prevention of Money Laundering Act (PMLA), following allegations that the company defrauded a consortium of banks led by Punjab National Bank (PNB).

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The alleged fraud dates back to October 2016, when the CBI filed an FIR against Arvind Remedies and its promoter for diverting funds through shell companies controlled by the promoters. Dummy directors, appointed through brokers, reportedly managed these companies without knowledge of their operations. Funds were rotated across these entities to inflate turnover, secure additional bank loans, and manipulate share prices for personal gain.

On September 2, 2025, ED teams conducted coordinated raids at Chennai and Kanchipuram (Tamil Nadu), Kolkata (West Bengal), and selected premises in Goa. The operations aimed to seize illegal assets and collect crucial evidence regarding the fraudulent transactions, according to The Hindu.

Authorities are now analyzing seized documents and digital records to trace the flow of illicit funds and identify all individuals involved.

Also Read: ED attaches properties worth Rs 85 lakh in Karnataka's medical college stipend scam

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