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ED Raids Tayal Group: Uncovers ₹820 Cr Bank Fraud & IBC Manipulation at 12 Locations.
- •The Enforcement Directorate (ED) has taken major action against the Tayal Group in a bank fraud and money laundering case.
- •ED's Kolkata team conducted simultaneous raids at 12 locations associated with the Tayal Group on Wednesday, September 30.
- •The investigative agency alleges that group companies used false information and forged documents to obtain funds from banks.
- •The ED's investigation is linked to two separate bank fraud cases, identifying proceeds of crime worth approximately ₹820.86 crore.
- •The ED alleges that during the IBC process, claims from promoter-related shell companies were accepted without adequate verification, making banks' voting share a minority.
Key Questions Answered
The Enforcement Directorate has identified proceeds of crime worth approximately Rs 820.86 crore across two separate bank fraud cases linked to the Tayal Group. This includes a fraud of about Rs 296.25 crore involving UCO Bank and M/s K. Lifestyle & Industries Limited, alongside approximately Rs 524.61 crore involving a Bank of India-led consortium and companies like M/s Actiff Corporation Limited and M/s Jaibharat Textiles & Real Estate Limited.
According to the ED, companies associated with the Tayal Group provided false information regarding production capacity and machinery, prepared fake stock statements, and forged documents to obtain funds from banks. The investigative agency also alleges that pledged machinery was sold without permission and that the obtained funds were transferred through promoter-controlled shell companies to be invested in real estate.
The ED alleges that following the attachment of Empress Mall on May 8, 2019, a Corporate Insolvency Resolution Process was initiated under Section 7 of the IBC against corporate guarantor M/s KSL & Industries Limited. Financial creditors close to the Tayal Group initiated this process, and resolution professionals allegedly accepted claims from promoter-related shell companies without adequate verification, granting them majority voting rights to undermine the statutory control of banks.
