Abhay Narendra Lodha, promoter and Managing Director of a Mumbai-based steel and power company Topworth Group, was arrested on Thursday by the Enforcement Directorate in a case of laundering bank money.

The ED investigation allegedly revealed that in addition to causing wrongful loss of ₹63.10 crore to IDBI bank by committing fraud in the credit facility availed through Letter of Credit/Trade Credit Bank Guarantee (LC/TCBG) during 2014-15 to 2016-17, the Topworth group of companies also generated proceeds of crime to the tune ₹3,000 crore through its connected entities.

Searches, said the investigating agency, were conducted at 12 premises spread across locations in Mumbai, Pune, New Delhi, Nagpur and Durg. Details of ownership of various immovable properties and companies overseas and within India which were not declared were unearthed during the searches by the ED officials. Foreign currencies of different countries bearing the present value of above ₹7 lakh along with various other incriminating documents have also been recovered, stated the agency. Details of shell entities related controlled by Abhay Lodha were also recovered, it pointed out.

Sree Venkateshwara Industries asset attachment

In another case, the ED has attached fixed deposit worth ₹90 lakh in a PMLA case against Hyderabad-based M/s Sree Venkateshwara Industries. The agency said it initiated investigation on the basis of a complaint filed by Telangana State Pollution Control Board (TSPCB) in the court of Metropolitan Magistrate, Cyberabad, alleging that the company was disposing hazardous waste material without proper treatment. The move violated rules and regulations stipulated by the TSPCB under various sections of Water (Prevention and Control of Pollution) Act 1974 and Air (Prevention and Control of Pollution) Act, said the ED.

As per the ED, Sree Venkateshwara Industries and its partners would not dispatch hazardous waste generated in their premises to treatment, storage and disposal facility of Hyderabad Waste Management Project. Instead, the firm disposed the hazardous waste by giving it to brick manufacturers. Investigation allegedly also revealed that by committing the said offence, the firm and its partners generated proceeds of crime amounting to ₹90 lakh which has been provisionally attached during investigation, said the agency.