ED raids premises of Kwality Ltd in connection with Rs. 1400 cr bank fraud

New Delhi, November 28

The Enforcement Directorate (ED) conducted raids at 12 locations in Delhi NCR on former promoters and directors of dairy products manufacturer Kwality Ltd.

The searches are part of a money laundering probe related to Rs. 1,400-crore bank fraud.

The premises of the former promoters of the company, directors and other key persons were searched under the PMLA Act. 

Kwality started as an ice-cream manufacturing company and diversified into milk-based products. Its former directors include Sanjay Dhingra, Siddhant Gupta, Arun Srivastava,

The CBI had filed FIR filed in September 2020 against Kwality Ltd and its then directors for allegedly cheating a consortium of 10 banks for over ₹1,400 crore, the report said.

The 10-bank consortium led by Bank of India was allegedly cheated by bloating financial statements and via diversion of loan funds, officials said.