ED Raids Multiple Locations in Bank Fraud Probe Against Former Kwality Ltd Promoters
The Enforcement Directorate (ED) conducted searches at multiple locations in Delhi and neighboring areas on Wednesday in connection with an alleged bank loan fraud and money laundering case involving former promoters of the liquidated dairy major Kwality Ltd. Around a dozen premises linked to the company’s ex-directors, promoters, and key associates were raided under the Prevention of Money Laundering Act (PMLA), according to official sources.
The case stems from a 2020 FIR registered by the Central Bureau of Investigation (CBI) against Kwality Ltd and its directors for allegedly cheating a consortium of 10 banks, led by the Bank of India, of over ₹1,400 crore. The FIR accused the company of inflating financial statements and diverting loan funds, prompting the ED to pursue the money laundering angle in the case.
Kwality Ltd, initially an ice-cream manufacturer, later diversified into milk-based products before being liquidated. Its former directors, including Sanjay Dhingra, Siddhant Gupta, and Arun Srivastava, are under scrutiny for their alleged roles in the financial irregularities. Investigations are ongoing as authorities sift through the evidence seized during the raids.
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