ED Searches Nimar Agro Park and Linked Entities Over Alleged ₹13.99 Crore NABARD Loan Diversion
The Directorate of Enforcement (ED), Indore Sub-Zonal Office, conducted search operations at four premises in Madhya Pradesh on September 9, 2026, in connection with an investigation into the alleged diversion and misuse of a ₹13.99 crore loan sanctioned by the National Bank for Agriculture and Rural Development (NABARD) to M/s Nimar Agro Park.
The searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002, and covered premises linked to Nimar Agro Park, its partners and associated entities, including M/s B.S. Cotton Pvt. Ltd., M/s Shree Rajrajeshwar Developers and M/s Shree Rajrajeshwar Ventures.
The ED initiated its investigation following an FIR registered by the Central Bureau of Investigation’s (CBI) Economic Offences Branch in Kolkata against the partners of Nimar Agro Park. The FIR alleges criminal conspiracy, cheating, criminal breach of trust, forgery and corruption.
According to the ED’s investigation, Nimar Agro Park secured a term loan of ₹13.99 crore from NABARD in 2019 under the Food Processing Fund Scheme. The loan was intended to support the establishment of an Agro Processing Cluster (APC) in Jamli village, Sendhwa, in Madhya Pradesh’s Barwani district.
The total estimated cost of the project was ₹31.04 crore. Its proposed funding included a ₹10 crore grant-in-aid sanctioned by the Ministry of Food Processing Industries, a contribution of ₹7.05 crore from the promoters and the ₹13.99 crore NABARD loan.
However, the ED alleges that the loan funds were diverted and misused instead of being spent on the intended project. The agro-processing project remained incomplete, and the loan account was classified as a non-performing asset (NPA) on September 29, 2024.
The alleged diversion and subsequent default resulted in a wrongful loss of ₹13.99 crore to NABARD, according to the investigation.
During the latest search operations, the ED seized documents and digital devices considered relevant to the case. The agency also froze four bank lockers as part of its efforts to trace assets and financial transactions potentially linked to the alleged proceeds of crime.
The searches were aimed at collecting documentary evidence, examining financial records, identifying assets acquired from or connected to the suspected proceeds of crime, and reconstructing the complete money trail.
The ED’s investigation is continuing to establish the alleged roles of the individuals and entities involved and determine how the loan funds were handled.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
