More than ₹110 cr of Lakhani India shoe company attached by ED

The Enforcement Directorate on Tuesday said that more than ₹110 crore of the Lakhani India shoe company has been attached in a loan fraud case registered under the Prevention of Money Laundering Act.

Lakhani India Ltd and its group companies — Lakhani Rubber Udyog Pvt Ltd, and Lakhani Apparel Pvt Ltd — “jointly defrauded” the Indian Overseas Bank, Punjab National Bank and Allahabad Bank by “misappropriation” and “diversion” of funds to other group companies, leading to a “fraud” of ₹162 crore. Their promoters, PD Lakhani and Suman Lakhani, were also allegedly complicit in the case, as per the agency.

“Out of the business/capital loans and credit facilities disbursed by the complainant banks, Lakhani group, on the directions of the promoters, made sales to related parties at a loss, repaid loans of sister concerns, made unusual interest payments to the directors, etc.,” the ED charged in a statement.

The sleuth have provisionally attached five commercial plots measuring more than 20 acres, a two-acre farmhouse, and a commercial flat-cum-office in Delhi-NCR under the PMLA, the agency said.

Together these properties are worth more than ₹110 crore, as per the ED.

The ED said it launched a money laundering probe against Lakhani India Ltd and its group companies — Lakhani Rubber Udyog Pvt Ltd, Lakhani Apparel Pvt Ltd along with their promoters PD Lakhani and Suman Lakhani — based on two FIRs the CBI filed in 2021 and 2023 allegedly for indulging in criminal conspiracy, and cheating to defraud various banks.