ED Attaches ₹4.53 Crore Assets in Steel Konnect Bank Fraud Case
The Enforcement Directorate (ED), Ahmedabad, has attached movable and immovable properties worth approximately ₹4.53 crore in connection with a bank fraud case involving M/s Steel Konnect India Private Limited.
The agency issued a Provisional Attachment Order (PAO) under the Prevention of Money Laundering Act (PMLA), 2002, on August 24, 2026. According to the ED, the overall misutilisation of funds in the case involves proceeds of crime amounting to ₹79.56 crore.
The money-laundering investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI) under various provisions of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
According to the ED, its investigation found that Steel Konnect India Private Limited, through its erstwhile directors and other unidentified individuals, allegedly violated the terms and conditions attached to the sanctioned loans. The agency alleged that loan funds were siphoned off through cash withdrawals and transferred to sister-concern companies without genuine business transactions.
The ED alleged that the transactions were part of a wider conspiracy intended to cause wrongful loss to the bank while providing wrongful gains to those involved. The agency further alleged that the loan amount was dishonestly misappropriated.
The investigation also found alleged diversion and routing of loan proceeds through non-consortium bank accounts, personal accounts of the company’s directors and transactions involving subsidiary companies.
After examining the money trail and utilisation of the loan funds, the ED issued the attachment order covering movable and immovable properties valued at approximately ₹4.53 crore.
The agency said further investigation in the case is underway.
News Source : Information for this article was gathered from a variety of reliable news outlets.
