Shimla: In a major step toward recovering financial losses incurred due to corporate fraud, the Enforcement Directorate (ED), Shimla, has successfully restituted properties worth ₹289 crore to a consortium led by the Bank of India.
The properties belonged to M/s Indian Technomac Co. Ltd (ITCOL), a company embroiled in a multi-crore financial scam.
According to ED officials, the assets were originally attached under the Prevention of Money Laundering Act (PMLA) as part of an ongoing probe into the misappropriation of funds by ITCOL.
The company, which was engaged in manufacturing and exporting metals and alloys, had defaulted on massive loans, leaving banks and creditors in the lurch.
The ED’s move comes as a significant boost to financial institutions seeking recovery from fraudulent entities.
The consortium, comprising multiple banks, had extended substantial credit to ITCOL, which later turned into non-performing assets (NPAs).
The attachment and restitution of assets mark a milestone in the agency’s efforts to trace and recover proceeds of crime (POC) linked to financial fraud.
The ED had initiated investigations against ITCOL following reports of fund diversion, leading to the attachment of various properties, including land, buildings, and machinery.
After due legal proceedings, the agency has now returned these assets to the banking consortium, ensuring that rightful claimants get their dues.
Officials noted that this action reaffirms the ED’s commitment to cracking down on financial irregularities and safeguarding the interests of lending institutions.
The case of ITCOL has been under scrutiny for years, with multiple agencies investigating allegations of financial mismanagement and fraud.
With the restitution of assets, the banks are expected to recover a significant portion of their losses, providing relief to the financial sector.
Meanwhile, legal proceedings against those responsible for the alleged fraud continue.
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