ED attaches Rs 53.95 crore more in alleged Parekh Aluminex bank fraud case
The Enforcement Directorate has provisionally attached properties worth Rs 53.95 crore in a case it alleges caused a loss of about Rs 2,296 crore to a consortium of banks.
Key points
- The ED's Mumbai Zone-I has provisionally attached properties worth Rs 53.95 crore under the PMLA in the Parekh Aluminex case.
- The ED alleges the company's loans were declared NPAs for about Rs 2,296 crore; it has now attached about Rs 546 crore in total.
- The attachment must be confirmed by the PMLA Adjudicating Authority, and the accused are presumed innocent until proven guilty.
The Enforcement Directorate (ED), Mumbai Zone-I, has provisionally attached immovable and movable properties worth Rs 53.95 crore under the Prevention of Money Laundering Act (PMLA), 2002, in a case linked to Parekh Aluminex Limited and others, according to its press release dated 2 November 2026. The ED alleges that the company's loan accounts with a bank consortium led by Indian Overseas Bank were declared bad loans for about Rs 2,296 crore. The agency says it has now attached assets of about Rs 546 crore in the case.
What Happened
According to the ED, its investigation began from FIRs registered by the CBI, the Economic Offences Wing, Mumbai, and the Economic Offences Bureau, Mumbai, against Parekh Aluminex Limited and others under Sections 420 and 120-B of the Indian Penal Code and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
The ED has alleged that the company fraudulently obtained loans from a consortium of banks by submitting inflated stock and debtor statements, and that its loan accounts were later declared non-performing assets (NPAs), meaning loans that have stopped being repaid, for about Rs 2,296 crore. The agency alleges that a business group helped divert Rs 110.54 crore of the proceeds of crime through various entities and persons, and that the same group received about Rs 70.25 crore as a beneficiary. The ED puts the total proceeds of crime at Rs 2,296.58 crore, which it says caused wrongful loss to the consortium led by Indian Overseas Bank and sixteen other banks.
The ED had earlier attached assets worth about Rs 493 crore in the case. It has filed a prosecution complaint before the Special Court (PMLA), Mumbai, which has taken cognizance of the offence, the release says. Further investigation is in progress, according to the agency.
What It Means
A provisional attachment bars the owner from selling or transferring the properties while the case goes on, but it is not final: it must be confirmed by the Adjudicating Authority under the PMLA. The release does not say how much of the banks' loss has been recovered.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate