ED Provisionally Attaches ₹1.14 Crore Worth of Properties in Money Laundering Case Linked to M/s Narayan Niryat India Pvt. Ltd.

Headnote:

The Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached three immovable properties worth ₹1.14 crore situated in Indore, belonging to M/s Ambika Solvex Ltd. and M/s Vardhman Solvent Extraction Industries Ltd., under the Prevention of Money Laundering Act (PMLA), 2002. These attachments are linked to the larger money laundering investigation involving M/s Narayan Niryat India Pvt. Ltd., which had earlier resulted in the attachment of assets worth ₹26.53 crore. The investigation reveals a complex financial fraud involving fraudulent bank loans, circular transactions, and diversion of funds for personal and corporate enrichment, camouflaged as legitimate business activities.

Background:

1. The ED’s action stems from an FIR registered by the CBI, AC-IV, Vyapam, Bhopal, under various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
2. Following CBI’s probe, a charge-sheet was filed against M/s Narayan Niryat India Pvt. Ltd. and several associated individuals and entities for financial fraud.
3. ED’s parallel investigation established that M/s Narayan Niryat India Pvt. Ltd., controlled by M/s Ambika Solvex Ltd., had fraudulently availed loans worth ₹110.50 crore from a consortium of banks led by UCO Bank, under the guise of Letters of Credit (LCs) and Export Packing Credit (EPC).
4. Despite the pretext of export financing, no genuine purchases or exports were ever conducted. Instead, the borrowed funds were routed among group companies in circular transactions to fabricate the appearance of legitimate trading activity.

ED’s Findings:

1. The investigation uncovered that loan proceeds were systematically diverted from their intended business use.
2. Funds were layered through a web of associated companies, firms, and benami entities controlled by the Ambika Solvex group.
3. The diverted money was ultimately used for acquisition of immovable properties, cash withdrawals, and other personal and corporate investments, effectively concealing the illicit origins of the funds.
4. The current attachment of ₹1.14 crore adds to the previously attached assets worth ₹26.53 crore, indicating a continuing pattern of laundering through property investments.
5. The fraudulent structure involved deliberate misrepresentation to banks, fabrication of trade documents, and round-tripping transactions to obscure the money trail.

Legal Provisions Discussed:

1. Sections 3 & 5, Prevention of Money Laundering Act, 2002 (PMLA) – Definition of money laundering and power to provisionally attach property derived from criminal activity.
2. Sections 120B, 420, 467, 468 & 471, Indian Penal Code, 1860 – Criminal conspiracy, cheating, and forgery.
3. Sections 13(1)(d) & 13(2), Prevention of Corruption Act, 1988 – Criminal misconduct by public servants in facilitating the loan fraud.

Outcome and Status:

The ED has provisionally attached three immovable properties worth ₹1.14 crore under Section 5 of PMLA, marking another step in dismantling the laundering network operated through M/s Ambika Solvex Ltd. and related entities. These attachments form part of a broader case involving the misappropriation of ₹110.50 crore from a consortium of banks. The agency continues to trace additional proceeds of crime and investigate the involvement of bank officials and related beneficiaries. Further investigation is underway.

Citation: ED Press Release No. 30/2025 – Bhopal Zonal Office

Case: Directorate of Enforcement v. M/s Narayan Niryat India Pvt. Ltd. & Ors.

Authority: Directorate of Enforcement (ED), Ministry of Finance, Government of India

Date of Release: 30 October 2025

Relevant Statute: Prevention of Money Laundering Act, 2002 (PMLA)