ED arrests MD of Topworth Group Abhay Lodha in bank fraud case

The MD of Topworth Group, Abhay Narendra Lodha, was arrested by the Enforcement Directorate (ED) after the ED conducted search operations at 12 locations in connection with bank fraud. 
  
The arrest was made on Wednesday and during the search operations, details of undisclosed properties and companies, foreign currency and shell companies, various incriminating documents and media were also recovered and seized, said officials. 

Prevention of Money Laundering Act (PLMA) Court granted ED custody for 10 days up to September 08. 

ED had initiated the investigation under the Prevention of Money Laundering Act, 2002 on the basis of FIR registered by CBI, BS & FB, Mumbai against Abhay Narendra Lodha, Promoter and Managing Director of M/s Topworth Steels and Power Pvt. Ltd.(TSPPL) and Topworth Group, said officials.

Searches were conducted at 12 premises at various locations in Mumbai, Pune, New Delhi, Nagpur, and Durg.

The officials said details of ownership of various immovable properties and companies overseas and within India (hitherto not declared) were unearthed during the searches, also adding that foreign currencies of different countries bearing the present value of above Rs 7 Lakhs along with various other incriminating documents and media were also recovered.

Details of shell entities controlled by Abhay Lodha were also recovered.

ED investigation revealed that in addition to causing wrongful loss amounting to Rs 63.10 crore to IDBI bank by committing fraud in the credit facility of the letter of Credit/Trade Credit Bank Guarantee (LC/TCBG) during the period 2014-15 to 2016-17, the Topworth group of companies had also generated proceeds of crime to the tune Rs 3000 crore through the Topworth group and its connected entities.

Further investigation in the case is underway, said officials.