ED Ahmedabad Attaches Assets Worth Rs 9.19 Crore in Sayona Colors Bank Fraud Case

Ahmedabad: The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has provisionally attached movable and immovable properties worth Rs. 9.19 crore in connection with a bank fraud case involving M/s Sayona Colors Private Limited and others, a press release said on Monday.

ED initiated the investigation based on an FIR registered by the CBI, BS&FB, Mumbai, against M/s Sayona Colors Pvt. Ltd. (M/s SCPL), its director Paresh D. Patel, M/s Shamrock Chemie Pvt. Ltd. and its directors, among others, for allegedly defrauding banks of Rs. 71.88 crore and diverting the funds to sister concerns through bogus agreements and circular transactions to obtain higher credit limits from banks.

The investigation revealed that M/s SCPL diverted loan funds to acquire properties in the names of its promoters and group entities. The company also transferred loan funds to group companies, either directly or by misusing Letter of Credit facilities. The companies allegedly entered into bogus agreements and carried out fraudulent transactions against these agreements to divert the loan funds.

Further, M/s Sayona Colors Pvt. Ltd. and M/s Shamrock Chemie Pvt. Ltd. allegedly indulged in circular routing of funds among themselves and other group companies, thereby inducing banks to enhance their credit facilities.

The attached assets include four agricultural lands that were directly acquired using diverted loan funds. The properties covered under the Provisional Attachment Order also include term deposits, two industrial plots, a residential flat and equity shares held in two Demat accounts.

This is the second attachment order issued in the case, taking the total value of attachments to Rs. 9.62 crore. Further investigation is under progress.