The Enforcement Directorate (ED) has provisionally attached assets valued at Rs. 294.19 crore under the Prevention of Money Laundering Act (PMLA), 2002, in a high-profile case involving M/s Sunstar Overseas Ltd. (SOL) and its former directors.
The attached assets, spread across various locations, include lands, buildings, flats, and fixed deposit receipts (FDRs).
The investigation by ED was initiated following an FIR filed by the Central Bureau of Investigation (CBI), Anti-Corruption Branch (ACB), Chandigarh, against the company and its ex-directors, Rohit Aggarwal, Manik Aggarwal, Sumit Aggarwal, among others. The FIR charged them with multiple offenses under the Indian Penal Code (IPC), including fraud, criminal misappropriation, criminal breach of trust, and cheating. As per the ED, the fraudulent activities resulted in a wrongful loss exceeding Rs. 950 crore to a consortium of nine lender banks.
According to the ED’s investigation, the total admitted claims against the said company amounted to Rs. 1274.14 crore. However, the entity was acquired through the Corporate Insolvency Resolution Process (CIRP) for a mere Rs. 196 crore by a resolution applicant, M/s Umaiza Infracon LLP, represented by Ajay Yadav. Notably, M/s Umaiza Infracon LLP has been identified as a shell entity, lacking any substantial funds of its own, raising suspicions about the legitimacy of the transaction.
During the investigation, ED conducted extensive searches under the provisions of PMLA in January 2024. Subsequently, in July 2024, the agency arrested three key individuals, Rakesh Gulati, Paramjeet, and Ajay Yadav, who were allegedly involved in the conspiracy and the diversion of loan funds. These individuals reportedly orchestrated the entire operation to regain control of the insolvent company’s business from the National Company Law Tribunal (NCLT).
The assets provisionally attached by the ED include 72 acres of land and buildings (including agricultural land) valued at Rs. 210.6 crore located in Sonipat, Amritsar, and Gurugram. The attached properties also comprise two residential houses in Civil Lines, Delhi, covering over 5,000 square meters and worth Rs. 77 crore, four flats in Karnal valued at Rs. 1.54 crore, as well as a bank balance of Rs. 1.27 crore and FDRs worth Rs. 3.78 crore.
The ED has stated that further investigation into the case is ongoing, as the agency continues to unravel the intricate web of financial transactions and identify additional assets potentially linked to the fraudulent activities.