UNE: On Thursday, the Special Prevention of Money Laundering Act (PMLA) Court in Mumbai ordered the remand of the promoter and managing director of Topworth Steels and Power Pvt Ltd (TSPPL) and Topworth Group, who had been arrested in a money laundering case, to the custody of the Enforcement Directorate (ED) until September 8.
The ED had apprehended Abhay Narendra Lodha on Wednesday in connection with the aforementioned case, which involved defrauding the IDBI Bank of Rs 63 crore. The central agency’s statement on Thursday indicated that it had conducted searches at 12 locations in New Delhi, Mumbai, Pune, Nagpur, and Durg in relation to the case.
The Enforcement Directorate (ED) initiated an inquiry pursuant to the Prevention of Money Laundering Act (PMLA) against the company, based on a FIR filed by the Bank Security and Frauds Cell (BS&FC) of the Central Bureau of Investigation (CBI).
The FIR specifically implicated Topworth Steels and Power, Abhay Narendra Lodha, and other individuals. As part of its investigation, the agency conducted searches of 12 premises associated with the accused. During these searches, officials discovered information regarding the ownership of various immovable properties and companies located both domestically and abroad.
The agency has reported that it has retrieved information regarding shell entities under the control of Abhay Lodha. Additionally, foreign currencies from various countries, valued at over Rs 7 lakh, along with several other incriminating documents and media, have been seized. The ED investigation has uncovered that the Topworth Group of companies, which Lodha allegedly controls, has caused a loss of Rs 63.10 crore to IDBI Bank by committing fraud in the credit facility of the Letter of Credit/Trade Credit Bank Guarantee (LC/TCBG) between 2014-15 and 2016-17.
The agency has also stated that the Topworth Group of companies has generated proceeds of crime amounting to Rs 3,000 crore through the Topworth Group and its connected entities.