ED Files Charges in ₹110.50 Crore Loan Fraud Case Against Narayan Niryat India Pvt Ltd

The Enforcement Directorate has filed a prosecution complaint before the Special Court in Indore against Narayan Niryat India Pvt Ltd, its director Kailash Chandra Garg and fourteen related entities, marking a key step in a multi-crore bank fraud investigation. The case stems from alleged misuse of export-linked credit instruments to fraudulently obtain more than ₹110 crore from a consortium led by UCO Bank.

The ED’s findings trace the origin of the case to a CBI probe that flagged forged export documents, fabricated purchases and a pattern of misrepresentation used to access Letters of Credit and Export Packing Credit facilities. Despite availing large credit limits intended to support genuine trade activity, investigators confirmed that no actual export or domestic procurement occurred. Instead, an elaborate facade of transactions was built to obscure the real intention behind the borrowed funds.

Officials said the diverted amounts were channelled through companies associated with Ambika Solvex Ltd, which generated circular transactions to mimic legitimate business turnover. These entities exchanged funds back and forth through falsified invoices and manipulated bank entries, creating an impression of operational activity while the loan proceeds were quietly siphoned off for private gains. Investigators noted that the financial pattern met the statutory definition of laundering under Section 3 of the PMLA.

Earlier, the ED had attached thirty-seven immovable properties valued at ₹27.67 crore, including commercial buildings, residential units and industrial plots. These assets were identified as being acquired directly or indirectly from the proceeds of the fraudulently obtained credit. Officials said the attachments safeguard public interest by preventing disposal of the properties before the trial concludes.

The probe has also highlighted how shell entities were used to mask the flow of funds and mislead the lending banks into believing that business activities were ongoing. Several of these companies reportedly existed only on paper, serving as pass-through accounts for rapid fund transfers, withdrawals and layering operations meant to conceal the origin of money.

Investigators are now following trails that may extend beyond domestic jurisdictions. The ED is assessing whether any portion of the diverted funds was routed abroad through trade-based transactions or undisclosed investments. Officials added that similar patterns have been observed in other corporate loan frauds where credit instruments are misused to generate illicit wealth while avoiding financial scrutiny. Strengthening governance systems with professional auditing services in india remains essential to preventing such large-scale financial deception.

The agency said further financial analysis and identification of ultimate beneficiaries are underway. More attachments and supplementary complaints are likely as the investigation progresses.