Enforcement Directorate to probe company over Rs 250cr fraud

The Enforcement Directorate (ED) on Tuesday began the process of registering a case in connection with Parekh Alluminex Ltd (PAL), which has been accused of cheating a bank of Rs 250 crore. Mumbai Police's Economic Offence Wing had arrested three directors of the company three days ago.

The enforcement case investigation report (ECIR) is being registered by the central agency. ECIR is similar to the First Information Report (FIR) registered by the police that ED registers to probe money laundering cases.

According to the ED officials, they would begin a full-fledged investigation under Prevention of Money Laundering Act (PMLA) and they have collected the details of the case from EOW and Central Bureau Of Investigation (CBI). "We are in the process of registering an ECIR in the matter and would begin the fresh probe in the case which would be mainly focused on the aspect of laundering of money and Benami assets angle," said ED official.

Last week, the EOW, had arrested three directors of Parekh Alluminex Ltd — Bhawarlal Bhandari, Premal Goragandhi and Kamlesh Kanungo for cheating, forgery, breach of trust and criminal conspiracy.