Ahmedabad: The Enforcement Directorate (ED), Ahmedabad Zonal Office, has submitted a prosecution complaint before the Special PMLA Court in the city against Hellios Tubealloys Pvt Ltd and its directors in connection with an alleged Rs 28.54 crore bank fraud involving Bank of Baroda.

The ED began its probe based on an FIR registered by the Central Bureau of Investigation (CBI) against the company and others. The FIR invoked Sections 120B (criminal conspiracy) and 420 (cheating) of the IPC, along with provisions of the Prevention of Corruption Act. The CBI had filed its chargesheet in December 2021, naming the company and its directors, Shantilal Sanghvi and Mahesh Sanghvi, for allegedly cheating the bank.

The ED’s complaint also names the company’s sister concern, SLS Stainless Pvt Ltd; Eckhardt Engineering Pvt Ltd; Hitendra Sanghvi; Pradeep Sanghvi; Zenith Strips Ltd; Rajesh Karwasra; and Scorodite Stainless India Pvt Ltd.

According to the ED, its investigation under the Prevention of Money Laundering Act (PMLA) found that the company and its directors allegedly diverted and siphoned off bank funds amounting to Rs 28.54 crore to related entities without any genuine business transactions. The agency further alleged that the company issued bogus Letters of Credit to avail loan funds and deliberately submitted falsified stock statements and manipulated books of accounts with the intention of causing wrongful loss to Bank of Baroda.

In December 2024, the ED provisionally attached immovable assets worth Rs 19.37 crore under the PMLA. The attached properties include commercial land located in Rajula, Saurashtra, and a residential flat in Ahmedabad.

The investigation revealed that the company was incorporated with the stated objective of trading in stainless steel products such as sheets, coils, plates, and fittings, and manufacturing various types of stainless-steel pipes and tubes. It had availed credit facilities aggregating Rs 29.67 crore from Bank of Baroda, the agency said. DeshGujarat