ED Attaches 18 Properties Worth ₹13 Crore in Warehouse Receipt Loan Fraud Case
The Directorate of Enforcement (ED), Indore Sub-Zonal Office, has provisionally attached 18 immovable properties valued at approximately ₹13 crore in connection with an alleged bank fraud case involving Alok Sharda and others. The attachment order was issued on September 10, 2026, under the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated its investigation based on two FIRs registered by the Economic Offences Wing (EOW), Bhopal, concerning alleged cheating and fraud involving IDBI Bank and Kisan Dhan Agri Financial Services Pvt. Ltd., a non-banking financial company (NBFC).
According to the ED’s investigation, Alok Sharda, proprietor of Sharda Warehouse in Manpur, Indore district, allegedly misused the Warehouse Receipt Finance Scheme in collusion with others. The accused allegedly showed agricultural commodities as being stored in the warehouse on behalf of farmers and issued warehouse receipts that were used to secure loans.
The agency stated that loans were sanctioned to 42 farmers against 62,965 bags of soybean and gram. However, the investigation allegedly found that the pledged agricultural commodities were removed and disposed of without proper authorisation.
The ED further alleged that forged or fictitious warehouse receipts, false claims about the availability of stock and the suppression or removal of records were used to obtain and maintain the loan facilities.
These alleged activities resulted in a wrongful loss of ₹14.04 crore to IDBI Bank, according to the investigation.
In a related transaction, Kisan Dhan Agri Financial Services Pvt. Ltd. had sanctioned warehouse receipt financing worth ₹12.04 crore to Alok Sharda against agricultural commodities reportedly stored at the same warehouse. Subsequent verification allegedly revealed significant shortages in the pledged stock, with commodities having been removed and disposed of without the lender’s required release approval or no-objection certificate.
The ED stated that the alleged fraud involving the two lenders resulted in a combined wrongful loss of approximately ₹26 crore, with corresponding gains to the accused.
The provisional attachment of the 18 properties is part of the agency’s ongoing investigation into the alleged diversion of funds and assets linked to the case.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
