ED attaches assets worth Rs 440 cr in Delhi, Haryana, and Punjab in Kwality Ltd loan fraud case
New Delhi: The Enforcement Directorate (ED) said on Thursday that it has attached assets valued at over Rs 440 crore across Delhi, Haryana, and Punjab in connection with an alleged bank loan fraud and money laundering case involving former promoters of Kwality Ltd, The Economic Times reported.
The ED issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) for properties including a 12,000 square yard farmhouse in DLF Chhatarpur, residential properties in Vasant Vihar and Punjabi Bagh (Delhi), and residential plots in Karnal (Haryana) and Mohali (Punjab), as per its statement.
The cumulative worth of these assets is Rs 442.85 crore.
These properties were reportedly "owned" by former Kwality Limited promoters Siddhant Gupta and Sanjay Dhingra through "dummy" companies.
The directors of these entities were identified as the promoters' driver and security guard, the ED revealed.
In November 2024, the agency conducted raids at 15 locations across Delhi-NCR as part of its investigation into Gupta, Dhingra, and "shell" companies linked to them.
Kwality, previously engaged in milk processing and dairy product trading, has since been liquidated and is now under new ownership.
The ED’s probe stems from a CBI FIR filed in September 2020 against the former promoters and the company, alleging a Rs 1,400 crore loan fraud involving a consortium of banks.
According to the ED, the accused "fudged" financial records to exaggerate sales and debtors.
"Substantial trading (sales/purchase) was carried out without actual physical delivery or receipt of goods at factory premises. Additionally, sham entities operated by dummy owners were utilised to siphon off bank funds," the agency alleged.
The diverted funds were "layered and circulated" to obscure their origin, eventually being channelled into various accounts as per the promoters’ instructions for purposes unrelated to the loans, the ED stated.
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