ED Ahmedabad Files Complaint Against Cold Storage Firm in ₹3.92 Crore Bank Fraud Case

Ahmedabad: The Enforcement Directorate (ED) announced on Tuesday that it has filed a Prosecution Complaint against M/s Avon Cold Storage Private Limited under the Prevention of Money Laundering Act (PMLA) before the Special PMLA Court on May 31. The court has taken cognisance of the matter.

The ED began its probe based on an FIR filed by the Central Bureau of Investigation (CBI) and the Anti-Corruption Bureau (ACB) in Gandhinagar. The FIR accuses Avon Cold Storage, its directors, and other individuals, including public servants, of conspiring to defraud Union Bank of India by falsifying records and submitting forged documents to fraudulently secure loans.

According to the ED, the company obtained a term loan from Union Bank (formerly Andhra Bank) by allegedly using fake proforma invoices from another firm. The funds, meant for purchasing machinery for a cold storage facility, were misused.

Instead of being used for the intended project, the loan was diverted through various entities and withdrawn in cash—amounting to Rs 3.92 crore—leaving no traceable money trail. The funds were ultimately spent on unrelated purposes, the ED added.

Earlier, the ED had provisionally attached assets worth Rs 1.30 crore in connection with the case. The investigation is ongoing. DeshGujarat