The Enforcement Directorate in Shimla has returned proceeds of crime, valued at Rs 1.44 crore, to the Bank of India related to a loan fraud case involving a private company. The fraud case pertains to Arvind Casting, where loans were acquired using forged documents and subsequently defaulted upon. This action was taken to reimburse the victim bank for the losses incurred.
The ED’s investigation, based on an FIR from 2014, revealed that Arvind Casting and others obtained credit facilities through misrepresentation and forged documents. The loan amounts were diverted to related entities instead of being used for the intended purposes, causing financial harm to the lending institutions. Earlier, properties worth around Rs 3.51 crore were provisionally attached in this case.
In June 2020, the ED filed a prosecution complaint before the Special Judge (PMLA) in Dharamshala, with the court acknowledging the complaint in March 2021. To ensure the restitution of proceeds of crime to legitimate claimants, the ED sought the release of a portion of the attached properties for the Bank of India. Consequently, the Special Judge (PMLA) ordered the restitution of immovable properties worth Rs 1.44 crore to the Bank of India on January 6, 2026.
