ED Attaches ₹53.95 Crore Assets in Parekh Aluminex Bank Fraud Case, Total Attachment Reaches ₹546 Crore

The Directorate of Enforcement (ED), Mumbai Zone-I, has provisionally attached immovable and movable properties worth ₹53.95 crore under the Prevention of Money Laundering Act, 2002 (PMLA). The case concerns an alleged bank fraud by Parekh Aluminex Limited (PAL) and others. With this order, ED's total attachments in the case stand at about ₹546 crore.

Key Highlights :

• The text of the release gives ₹53.95 crore, while its heading reads ₹53.59 crore; the body figure is used here and the discrepancy should be checked against the attachment order.
• PAL's loan accounts were declared non-performing assets for about ₹2,296 crore; ED puts total proceeds of crime at ₹2,296.58 crore.
• ED says J K Shah Group assisted in diverting ₹110.54 crore through various entities and persons.
• One beneficiary allegedly received and enjoyed about ₹70.25 crore of the proceeds.
• Earlier attachments of about ₹493 crore bring the cumulative figure to about ₹546 crore.
• The Special Court (PMLA), Mumbai, has taken cognizance of the prosecution complaint already filed.

Background :

• The case rests on an FIR by CBI, EOW Mumbai and EOB Mumbai under IPC sections 420 and 120-B and sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
• ED alleges PAL obtained loans from a consortium led by Indian Overseas Bank and sixteen other banks by submitting inflated stock and debtor statements.
• The consortium suffered wrongful loss on the NPA accounts.

What Has Changed :

• Entity: Parekh Aluminex Limited and others; Allegation / Violation: Loans obtained on inflated stock and debtor statements; accounts turned NPA (about ₹2,296 crore); Action Taken (amount ₹, assets attached, penalty): Earlier attachment about ₹493 crore; new provisional attachment ₹53.95 crore; total about ₹546 crore; Next Step: Trial; cognizance already taken by Special Court (PMLA), Mumbai.
• Entity: J K Shah Group and a beneficiary; Allegation / Violation: Alleged help in diverting ₹110.54 crore; one beneficiary allegedly received about ₹70.25 crore; Action Taken (amount ₹, assets attached, penalty): Included in the attachment; breakdown by entity not stated in source; Next Step: Further investigation.

Who Is Affected :

• PAL, J K Shah Group and the persons or entities whose properties are attached.
• The consortium banks led by Indian Overseas Bank and sixteen other banks, as the affected lenders.
• No class is expressly excluded.

Compliance Action Points :

No direct compliance action.

Analysis & Impact :

• For CA / CS / Tax & Legal Professionals: The ₹53.59 crore / ₹53.95 crore mismatch between heading and text should be resolved from the provisional attachment order before it is quoted in client notes. Third-party holders of attached assets may need to examine their title and any bona fide purchaser claim.
• For Businesses & Investors: Banks and auditors can note the red flag alleged here, namely stock and debtor statements that were inflated to support borrowing limits.
• For News Readers: ED has now attached about ₹546 crore against a fraud that caused about ₹2,296 crore in alleged losses to banks.
• Points to Watch: Confirmation of the attachment, trial progress in Mumbai and any restitution to the consortium.

References :

• Prevention of Money Laundering Act, 2002 – provisional attachment and prosecution complaint.
• Indian Penal Code, 1860 – sections 420 and 120-B.
• Prevention of Corruption Act, 1988 – sections 13(1)(d) and 13(2).
• No earlier circular or case law is named in the source.

Source & Attribution :

• Primary source: Directorate of Enforcement, Press Release dated 02 November 2026 (Mumbai Zone-I). Link: Not stated in source.
• No other source used.

Disclaimer: This summary is an editorial aid prepared from publicly available information. It is not legal, tax or investment advice. Refer to the original notification, circular, order or report before acting.