Returned assets of over Rs 185 cr to banks in loan fraud case: ED

ED Returns Assets Worth Rs 185 Crore to SBI-Led Consortium in Surya Pharma Loan Fraud Case

The Enforcement Directorate (ED) announced on Wednesday that it has returned assets valued over Rs 185 crore to a State Bank of India (SBI)-led consortium of banks impacted by a major loan fraud orchestrated by Surya Pharmaceutical Ltd. The Chandigarh-based company, currently undergoing liquidation, allegedly caused wrongful losses totaling Rs 828.5 crore. Promoters Rajiv Goyal and Alka Goyal, who fled India and were declared proclaimed offenders in 2017 by a Chandigarh court, are accused of defrauding the banks through falsified loan applications and fabricated documents.

The ED’s investigation revealed that Surya Pharmaceutical used manipulated invoices, transport documents, and lorry receipts to obtain Inland Letters of Credit (ILCs) from the banks, followed by further deceit through Foreign Letters of Credit (FLCs) with falsified import invoices, shipping documents, and bills of lading. The funds acquired through these fraudulent means were allegedly siphoned off into various shell companies and accounts linked to Surya Pharmaceutical, contributing to an aggregate loss of Rs 828.5 crore for the lending banks.

In October 2022, the ED seized assets connected to the accused, including property and infrastructure spanning 80 kanals of land in Samba, Jammu, along with plant and machinery, furniture, and fixtures. A charge sheet was filed in April 2023, following which the ED collaborated with both the victim banks and an official liquidator appointed by the National Company Law Tribunal (NCLT) to pursue restitution. The agency provided a no-objection statement to facilitate the process, and on October 25, a special court in Chandigarh issued a restitution order under Section 8(7) of the Prevention of Money Laundering Act (PMLA), enabling the return of the attached assets to the consortium.