Promoters and CA of Parabolic Drugs Arrested in ₹1,626.74 Crore Bank Fraud Case

The Enforcement Directorate (ED) has arrested the promoters and a chartered accountant of Chandigarh-based pharma company Parabolic Drugs in connection with a massive ₹1,626.74-crore bank fraud case. The case, stemming from a 2021 CBI FIR, alleges fraud through fictitious documents and fund misappropriation, leading to significant losses for the banks involved.

In a significant development, the Enforcement Directorate (ED) has apprehended two promoters and a chartered accountant of Parabolic Drugs, a Chandigarh-based pharmaceutical company, as part of a money laundering investigation linked to a staggering ₹1,626.74-crore bank fraud case. The individuals taken into custody have been identified as Pranav Gupta and Vineet Gupta, the company’s promoters, along with CA SK Bansal. Their arrest followed hours of intensive questioning by ED officials.

The trio was presented before a special court in Chandigarh, which subsequently remanded them into five-day ED custody. This action by the ED comes in the wake of extensive raids conducted at 17 locations across Delhi, Mumbai, Chandigarh, Panchkula, and Ambala. These raids were part of a broader inquiry into a Prevention of Money Laundering Act (PMLA) case initiated by the ED.

The ED’s case can be traced back to a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in 2021, naming the pharma company and the Guptas, among others. The CBI’s investigation, launched in December 2021, focused on allegations of defrauding a consortium led by the Central Bank of India of a staggering ₹1,626.74 crore. Subsequently, the agency conducted raids at various premises associated with the accused.

The bank’s complaint to the CBI outlined a sophisticated modus operandi employed by the fraudsters. It involved obtaining credit facilities from banks based on fictitious documents and subsequently misappropriating the funds. The alleged wrongdoers are accused of diverting the funds to non-consortium bank accounts, from where they were siphoned off for the acquisition of assets and personal enrichment. These actions resulted in substantial financial losses for the banks involved.

As this case unfolds, it underscores the need for rigorous financial oversight and regulatory measures to prevent large-scale financial fraud and money laundering schemes. The ED’s continued efforts to bring the perpetrators to justice serve as a testament to the commitment of Indian law enforcement agencies in combating economic crimes.

The arrests of the pharma company’s promoters and their CA mark a significant step in the ongoing investigation, with the hope that the legal process will uncover the full extent of the alleged financial misconduct and provide a measure of justice for the defrauded banks.

Sources By Agencies