Bank 'fraud' case: ED raids ex-directors, promoters of Kwality Ltd

The money laundering case stems from a 2020 FIR of the CBI against Kwality Ltd and its directors filed in September 2020 for allegedly cheating a consortium of 10 banks, for an amount over Rs 1,400 crore through alleged bloating of financial statements and diversion of loan funds.

New Delhi: The Enforcement Directorate (ED) on Wednesday conducted searches at multiple locations in Delhi and adjoining areas as part of an alleged bank loan fraud linked money laundering probe against former promoters of liquidated dairy major Kwality Ltd, official sources said.

About a dozen places are being raided under the provisions of the Prevention of Money Laundering Act (PMLA), the sources said.

The money laundering case stems from a 2020 FIR of the CBI against Kwality Ltd and its directors filed in September 2020 for allegedly cheating a consortium of 10 banks, led by the Bank of India, for an amount over Rs 1,400 crore through alleged bloating of financial statements and diversion of loan funds.

The premises of the former promoters of the company, directors and other key persons are being searched, the sources said.

Kwality Ltd. started as an ice-cream manufacturing company and diversified into milk-based products. Its former directors include Sanjay Dhingra, Siddhant Gupta, Arun Srivastava.