Thu Sep 04 18:44:16 UTC 2025: Okay, here’s a summary and a news article based on the provided text:

**Summary:**

The Directorate of Enforcement (ED) in Chennai conducted searches across multiple locations connected to Arvind Remedies Ltd. and its promoters under the Prevention of Money Laundering Act (PMLA) on Tuesday and Wednesday, September 2025. This action stems from an FIR filed by the CBI based on a complaint from Punjab National Bank (PNB), alleging Arvind Remedies and its promoter, Arvind B Shah, defrauded a consortium of banks of ₹637 crore. Investigations revealed that bank funds were siphoned off through shell companies, with dummy directors used to facilitate the process. Assets secured for the loans were also disposed of without the bank’s knowledge. The ED has frozen approximately 1.5 million shares held by promoters and seized incriminating evidence. The investigation is ongoing.

**News Article:**

**ED Raids Arvind Remedies in ₹637 Crore Bank Fraud Case**

**CHENNAI, September 4, 2025** – The Directorate of Enforcement (ED) conducted extensive searches at multiple locations linked to Arvind Remedies Ltd. and its promoters, Arvind B Shah, on Tuesday and Wednesday, September 2nd and 3rd, under the Prevention of Money Laundering Act (PMLA). The raids spanned Chennai, Kancheepuram, Goa, Kolkata, and Mumbai, targeting premises of promoters, dummy directors, and key individuals involved in the alleged fraud.

The investigation was initiated based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), which stemmed from a complaint lodged by Punjab National Bank (PNB). The complaint alleged that Arvind Remedies Ltd. and its promoter defrauded a consortium of banks, led by PNB, of ₹637 crore.

According to the ED, the consortium of banks, including United Bank of India and State Bank of India, extended credit facilities totaling ₹704.75 crore to Arvind Remedies. As of September 30, 2016, ₹637.58 crore remained outstanding, leading to the classification of all loan accounts as Non-Performing Assets (NPA).

The ED’s investigation revealed a sophisticated scheme where bank funds were allegedly siphoned off through a network of shell companies controlled by the promoters. Investigators found dummy directors were appointed through brokers to manage these shell entities. The funds were rotated amongst these companies to artificially inflate turnover and deceive the banks into providing additional funding. The ED also alleges that funds were used to manipulate share prices and acquire assets, and that assets pledged as security were disposed of without the banks’ consent, hindering loan recovery.

During the raids, several dummy directors admitted to being unaware of the companies’ affairs and were merely compensated for signing checks.

The ED has frozen approximately 1.5 million shares of various listed and unlisted companies held by the promoters in the names of family members and relatives. The valuation of these assets is currently underway. Several incriminating digital and documentary evidence have been seized.

The investigation is ongoing, and the ED is working to uncover the full extent of the alleged fraud and recover the misappropriated funds. The agency said the investigation revealed the bank funds were siphoned off through shell entities controlled by the promoters. The assets provided as security to the banks were disposed of without the knowledge of the banks and thereby the banks were deprived of the assets to enforce recovery of the loans.

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