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Informative

ED Conducts Searches in ₹10.95 Crore Bank Fraud Case Involving Ahmedabad-Based Textile Firms under PMLA, 2002.

Update / Judgement Date

12 Oct 2025

Source

WCP News Bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

Financial ManagementOther Legal Matters
ED Conducts Searches in ₹10.95 Crore Bank Fraud Case Involving Ahmedabad-Based Textile Firms under PMLA, 2002.
WCP News Bulletin

Headnote:

The Directorate of Enforcement (ED), Ahmedabad Zonal Office, conducted searches under the provisions of the Prevention of Money Laundering Act, 2002, at six locations in Ahmedabad, Gujarat, in connection with a ₹10.95 crore bank fraud case. The searches resulted in the seizure of gold and diamond jewellery worth approximately ₹3 crore and the freezing of fixed deposits amounting to ₹23 lakh. The case pertains to fraudulent cash credit facilities obtained using forged documents by three firms linked to Ranjitkumar J. Loonia.


Background:

  1. The ED initiated investigation based on an FIR registered by the Central Bureau of Investigation (CBI) following a complaint filed by the Oriental Bank of Commerce.
  2. The complaint was against three proprietorship firms — Shree Om Fab, Shree Baba Textile, and Shree Laxmi Fab, owned by Ranjitkumar J. Loonia, engaged in trading of grey cloth.
  3. These firms had allegedly availed cash credit facilities using forged documents and diverted sanctioned funds for non-business purposes.
  4. The diverted funds were used for repayment of housing loans, purchase of immovable properties, acquisition of gold and silver bullions, and cash withdrawals, causing a total loss of about ₹10.95 crore to the bank.


ED’s Observations and Actions:

  1. During searches conducted on 08.10.2025 and 09.10.2025, ED recovered and seized gold and diamond jewellery worth ₹3 crore (approx.), and froze fixed deposits worth ₹23 lakh under Section 17 of PMLA, 2002.
  2. ED also found documents and property details worth crores of rupees, suspected to be proceeds of crime.
  3. The evidence indicates diversion and laundering of bank funds through multiple channels, including investment in assets and valuables.
  4. Further investigation is under progress.


Legal Provisions Discussed:

  1. Section 17, Prevention of Money Laundering Act, 2002 (PMLA): Search and seizure of property involved in money laundering.
  2. Prevention of Money Laundering Act, 2002: For investigation, attachment, and confiscation of proceeds of crime derived from scheduled offenses.


Case: Directorate of Enforcement, Ahmedabad Zonal Office – Investigation under the Prevention of Money Laundering Act, 2002

Court / Authority: Directorate of Enforcement (ED)