Directorate of Enforcement Press Release: Searches Lead to Freezing of Assets Worth ₹1.36 Crore in Leeway Logistics Money Laundering Case.

Headnote:

The Enforcement Directorate (ED) conducted coordinated search operations across Mumbai, Delhi, and Gurugram on 18.11.2025 in connection with a money laundering probe involving M/s Leeway Logistics Ltd. The searches resulted in freezing of fixed deposits and mutual funds worth approximately ₹51.81 lakh and seizure of gold coins and a gold bar valued at around ₹84 lakh, along with a large set of incriminating documents. The investigation arises from a CBI FIR alleging that Leeway Logistics and its directors fraudulently obtained and diverted loan funds from a banking consortium, causing a loss of over ₹173 crore. ED’s findings indicate widespread fund diversion through dummy entities and cash withdrawals. Further investigation is ongoing.

Background:

ED initiated proceedings based on an FIR registered by the CBI, BS&FB, Mumbai, against M/s Leeway Logistics Ltd, its directors, guarantors, and associated individuals. According to the FIR, the company, in connivance with its promoters and other accused persons, fraudulently availed credit facilities of ₹167.5 crore from a consortium of banks led by Bank of India. Between 2013 and 2016, the accused allegedly diverted funds, engaged in round-tripping transactions, made payments to unrelated parties, dishonoured letters of credit, and manipulated financial statements, leading to a wrongful loss of ₹173.18 crore to the banks. The account was subsequently declared NPA on 30.09.2016.

Investigation Findings:

The ED discovered that Sanjay Sinha, Director of Leeway Logistics Ltd, along with collaborators, created numerous dummy entities to route loan proceeds, artificially inflate the company’s turnover, and fraudulently obtain increased credit limits. Significant sums were diverted through these shell accounts, followed by substantial cash withdrawals to siphon off loan funds. The search operations resulted in freezing of deposits worth ₹51.81 lakh, seizure of gold valued at ₹84 lakh, and collection of incriminating materials indicating systematic financial fraud. Further investigation is underway to trace the complete laundering network and beneficiaries.

Legal Provisions Discussed:

• Sections relating to cheating, criminal conspiracy, and fraud under FIR registered by CBI.

• Prevention of Money Laundering Act, 2002 – Attachment and seizure of proceeds of crime; investigation of laundering offences.

Date: 20 November 2025

Authority: Directorate of Enforcement (ED), Mumbai Zonal Office

Law Invoked: Prevention of Money Laundering Act (PMLA), 2002