12 September,2026 05:27 PM IST | Mumbai | mid-day online correspondent
The ED froze a fixed deposit worth USD 3.7 million, approximately Rs 35.71 crore, maintained with Indian Bank`s Singapore branch. Representational Pic
The Directorate of Enforcement (ED), Mumbai Zonal Office-II, conducted searches at eight residential and commercial premises in Mumbai and Chhatrapati Sambhajinagar in connection with an alleged Rs 135 crore bank fraud involving Gajanan Gangamai Industries LLP (GGI LLP) and others.
The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said in a press release.
The ED's investigation stems from an FIR and subsequent chargesheet filed by the CBI's Anti-Corruption Branch, Pune, against GGI LLP, its partners and others.
The CBI case relates to alleged offences including cheating, criminal conspiracy and criminal misconduct in connection with loans obtained from a consortium of banks led by Bank of India.
According to the ED, the outstanding dues were around Rs 135 crore after the loans turned into non-performing assets (NPAs) and were subsequently declared fraudulent by the consortium banks.
The ED alleged that the loan funds were diverted and siphoned off through a network of entities allegedly set up by former GGI LLP partner Nitin Ramchandra Jadhav.
According to the agency, the funds were routed through multiple shell entities and alleged entry providers as part of a complex round-tripping mechanism. The ED further alleged that substantial amounts were subsequently withdrawn in cash to conceal the movement and utilisation of the alleged proceeds of crime.
During the searches, the ED froze a fixed deposit worth USD 3.7 million, approximately Rs 35.71 crore, maintained with Indian Bank's Singapore branch.
The agency also seized a BMW 320LD Grand Luxury Line vehicle, along with incriminating documents and digital devices containing material relevant to the investigation.
The ED said further investigation into the alleged money laundering case is underway.
In a separate incident, Alleged fugitive businessman Vijay Mallya has renewed his criticism of India's investigative agencies, accusing the CBI and ED of pursuing what he described as false and fabricated allegations against him.
In a series of posts on X, Mallya questioned the investigations into loans taken by Kingfisher Airlines and argued that banks had approved the loans through their established decision-making processes. He also claimed that money recovered by the ED had been returned to banks to which he owed money.
Mallya has previously disputed the description of him as a fugitive from India, saying that legal proceedings in the UK had restricted his ability to travel.
