CBI exposes Rs 2,500 crore fraud case in multiple raids across Mumbai

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The Central Bureau of Investigation (CBI) on Tuesday carried out multiple raids simultaneously at the premises of Parekh Aluminex Ltd (PAL), a city-based aluminium foil manufacturing firm, which allegedly defrauded nearly two dozen PSUs of Rs 2,500 crore.

The raids were conducted at the premises of PAL's direct beneficiaries, including Kirti Kedia of Transcon Developers, Kamlesh Kanungo of Trisons industry and J K Shah (director of a money-lending firm).

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"The Deloitte report of a forensic audit confirmed that Parekh Aluminex Ltd defrauded the PSUs. The major chunk of the defrauded money was invested in real estate business," said a source.

The Economic Offences Wing (EOW) of CBI carried out raids at various locations in south Mumbai, Prabhadevi, Santacruz and Bandra. Cops were deployed at these locations during the raid. "We have seized incriminating documents from these locations. At present we are studying the documents," said the source. Statements of the people concerned will soon be recorded.

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Sources told mid-day that the EOW had booked PAL and its directors - late Amitabh Parekh, Rajendra Gothi, Devanshu Desai and Kiran Parekh - last year for defrauding the Cuffe Parade branch of EXIM Bank.

"During investigation, we found that Parekh Aluminex Ltd had formed shell companies through circular trading and fake invoice," a CBI source told mid-day. Nearly two dozen PSUs, including Indian Overseas Bank, Punjab National Bank and State Bank of India, incurred a loss to the tune of Rs 2,500 crore, the source added.

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The Security and Exchange Board of India (SEBI) had, in 2017, barred PAL from securities market and issued show-cause notices to its statutory auditor and a former executive director for alleged accounting fraud, diversion of funds and understatement of loans by over Rs 1,000 crore.
With agency inputs

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