Steel Konnect India was involved in Routing/diversion of loan proceeds by way of making huge transactions through Non-Consortium Bank Accounts, Utilization in Personal Accounts of directors, Transactions through Subsidiary Companies, etc
FinTech BizNews Service
Mumbai, 26 September, 2026: Directorate of Enforcement (ED), Ahmedabad, has issued Provisional Attachment Order (PAO) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 on 24.08.2026, attaching movable and immovable properties having a total value of Rs. 4.53 Crore (Approx.), in connection with a Bank Fraud Case involving M/s Steel Konnect India Private Limited.
The total mis utilization of funds in the case of M/s Steel Konnect India Private Limited involves Proceeds of Crime to the tune of Rs 79.56 crore. Investigation has initiated on the basis of an FIR registered by the Central Bureau of Investigation under various provisions of the Indian Penal Code, 1860 and Prevention of Corruption Act 1988. During the course of investigation, it was observed that M/s Steel Konnect India Private Limited through its erstwhile directors colluded among themselves and unknown others, in committing the criminal activities like violating sanctioned terms and conditions of the loan, siphoning off funds by cash withdrawals, transferring funds to the sister concern companies without any genuine business transactions in pursuance of a well knitted conspiracy and with dishonest intention of causing wrongful loss to the Bank and wrongful gain to themselves and thereby dishonestly misappropriated the loan amount.
The Company M/s Steel Konnect India Private Limited was involved in Routing/diversion of loan proceeds by way of making huge transactions through Non-Consortium Bank Accounts, Utilization in Personal Accounts of directors, Transactions through Subsidiary Companies, etc. After conducting a thorough investigation into the money trail and utilization of funds, ED Ahmedabad has issued a Provisional Attachment Order attaching immovable and movable properties valued at Rs. 4.53 Crore (Approx.). Further investigation is under progress.
