ED raids 12 Delhi-NCR locations linked to Kwality ex-executives in ₹1,400-crore bank fraud, money laundering probe

The Enforcement Directorate (ED) conducted raids on November 27 at 12 locations in Delhi NCR on former promoters and directors of dairy products manufacturer Kwality Ltd, PTI reported, citing official sources. The searches are part of a money laundering probe related to a ₹1,400-crore bank fraud.

According to sources cited in the PTI report, around a dozen places are being raided under the provisions of the Prevention of Money Laundering Act (PMLA).

The premises of the former promoters of the company, directors and other key persons are being searched, sources said.

Case Background

The case relates to a Central Bureau of Investigation's (CBI) FIR filed in September 2020 against Kwality Ltd and its then directors for allegedly cheating a consortium of 10 banks for over ₹1,400 crore, the report said.

The 10-bank consortium, led by the Bank of India (BOI), was allegedly cheated by bloating financial statements and via diversion of loan funds.

Kwality started as an ice-cream manufacturing company and diversified into milk-based products. Its former directors include Sanjay Dhingra, Siddhant Gupta, Arun Srivastava, PTI reported.

(With inputs from PTI)