ED Seizes Avantha Group's Assets Worth Over Rs 678 Crore in Money Laundering Case

The Enforcement Directorate has attached land assets worth over Rs 678 crore belonging to the Avantha Group under the anti-money laundering law. This action is part of a probe into an alleged bank loan fraud. The assets are linked to a complaint by the SBI leading to a CBI FIR and subsequent ED investigation.

Land assets worth over Rs 678 crore of the Avantha Group have been attached under the anti-money laundering law as part of an alleged bank loan fraud probe, the Enforcement Directorate announced on Thursday.

In a provisional order under the Prevention of Money Laundering Act (PMLA), the properties located in Haryana, Maharashtra, and Uttarakhand were attached. The assets belong to various group companies of the Avantha Group, which is owned and controlled by businessman Gautam Thapar.

The disclosure of potential financial implications made by CG Power and Industrial Solutions Ltd. in 2019 initiated actions from lender banks and resulted in a CBI case in June 2021. The ED's investigation, stemming from the CBI FIR, revealed that Rs 1,307.06 crore were diverted to Avantha Group companies. Most funds were authorized without board approval and remained outstanding.

(With inputs from agencies.)