Ahmedabad: The Enforcement Directorate (ED) has filed a supplementary chargesheet before a court in Ahmedabad in connection with an alleged bank fraud and money laundering case involving Hellios Tubealloys Pvt Ltd (formerly known as M/s SLS Tubes Pvt Ltd) and its associated entities. The case pertains to an alleged fraud of Rs 28.54 crore involving the Bank of Baroda.

According to officials, the ED had earlier conducted search operations in the case and seized several incriminating documents. In December 2024, the agency had also provisionally attached immovable properties worth Rs 19.37 crore belonging to the accused.

The ED initiated its investigation based on a complaint filed by the Central Bureau of Investigation (CBI). The case originated from a complaint lodged by the Deputy General Manager of Bank of Baroda’s SME Loan Factory branch in Ahmedabad. Based on the complaint, the CBI registered a case in 2020 alleging that the company and its directors had defrauded the bank of Rs 28.54 crore.

Treating the CBI FIR as a scheduled offence under the Prevention of Money Laundering Act (PMLA), the ED registered an Enforcement Case Information Report (ECIR) on January 28, 2021, and launched an investigation into the money laundering aspects of the case.

According to the supplementary chargesheet filed by the ED’s Assistant Director, Bank of Baroda had sanctioned credit facilities worth Rs 29.67 crore to the company. As per the loan terms, the company was required to route its banking transactions exclusively through Bank of Baroda.

However, the investigation alleged that the company’s directors, Shantilal Premchand Sanghvi and Mahesh Shantilal Sanghvi, violated these conditions and diverted bank funds to alleged shell entities and sister concern companies, resulting in the alleged misuse of loan funds. DeshGujarat