ED raids multiple locations in Rs 386 crore TBVFL loan fraud case

Mumbai, July 11 (IANS) The Enforcement Directorate (ED), Mumbai Zonal Office, conducted search operations under the Prevention of Money Laundering Act (PMLA) in connection with an ongoing investigation into financial irregularities involving Talwalkar Better Value Fitness Limited (TBVFL) and its promoters.

The coordinated searches took place at 15 locations across Mumbai, Pune, Goa, and Chennai, said the ED in a statement issued here on Friday.

The ED’s action is based on FIRs registered by police authorities under various sections of the Indian Penal Code (IPC), 1860. TBVFL and its directors are accused of defrauding Axis Bank and the former Laxmi Vilas Bank by diverting loan funds, falsifying accounts, and misusing corporate structures. The alleged fraud amounts to Rs 206.35 crore involving Axis Bank (term loan and Non-Convertible Debentures) and Rs 180 crore involving Laxmi Vilas Bank, the ED informed.

Preliminary ED investigation has revealed that TBVFL misused term loans and funds raised through NCDs by diverting them to shell entities under the pretext of vendor payments. These funds were subsequently routed to companies related to the promoters. The investigation also exposed manipulation of royalty payments and share subscription premiums as mechanisms for fund diversion.

According to the ED, during the search operations, incriminating documents, digital devices, and unaccounted cash amounting to Rs 8 lakh were seized. In addition to this, property documents related to high-value assets — including flats, commercial spaces, villas, and bungalows located in Mumbai, Nagpur, and Goa — were discovered. Overseas investments linked to the group, allegedly made using misappropriated bank funds, also came to light.

The total value of seized property-related documents is estimated at around Rs 200 crore. The ED’s probe aims to trace the full extent of the money trail and recover proceeds of crime. Further investigation is currently underway.

--IANS

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