The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has provisionally attached two immovable properties in connection with the Shree Om Fab bank fraud case under the Prevention of Money Laundering Act (PMLA), 2002.
The attachment was carried out on January 12, 2026, covering properties with a book value of ₹53.50 lakh and a current market value of approximately ₹4.65 crore, held in the names of Prem Devi Loonia and Payal Choksey.
Background of the Case
The case originates from an FIR registered by the Central Bureau of Investigation (CBI) on May 24, 2018, based on a complaint filed by Oriental Bank of Commerce. The FIR named:
- M/s Shree Om Fab (Proprietor: Ranjit Loonia)
- Other associated entities and individuals
Subsequently, the CBI filed a chargesheet on December 16, 2019, detailing the alleged fraudulent activities.
Alleged Bank Fraud and Loan Diversion
According to the CBI investigation:
- Three proprietorship firms, Shree Om Fab, Shree Baba Textile, and Shree Laxmi Fab, owned by Ranjit Loonia, were sanctioned credit limits totaling ₹9.95 crore
- The outstanding amount, including interest, stood at ₹10.932 crore as on the date the accounts became NPAs
- Loonia allegedly entered into a criminal conspiracy with a panel valuer, Mayur Shah, bank officials, and others
The investigation revealed that the accused allegedly:
- Submitted false business records
- Used forged documents
- Furnished fake valuation reports of mortgaged properties to secure loans.
Misuse of Loan Funds
Instead of utilizing the sanctioned cash-credit limits for legitimate business purposes, the loan funds were allegedly:
- Diverted to multiple bank accounts without genuine business activity
- Withdrawn in cash
- Used for purchasing bullion, repaying housing loans, and other personal expenses
These actions allegedly resulted in wrongful loss to the lending bank.
ED Investigation and Property Attachment
Based on the CBI FIR and chargesheet, the ED initiated a PMLA investigation and conducted searches at premises linked to the accused.
Earlier searches led to the recovery of valuables worth approximately ₹3.67 crore. Further investigation revealed that housing loan repayments for two properties, located at Prayag Residency and Siesta Dwelling, were made using funds routed from the fraudulently obtained loan accounts.
As a result, the ED issued the Provisional Attachment Order (PAO) dated January 12, 2026, attaching the said immovable properties as proceeds of crime.
Total Assets Attached So Far
- Cumulative market value of assets seized/attached in the case: approximately ₹8.30 crore
- Further investigation in the matter is currently underway.
Significance of the Case
The Shree Om Fab case highlights:
- Misuse of bank credit facilities
- Role of forged valuations and documentation in financial fraud
- ED’s continued enforcement against loan diversion and money laundering
The importance of oversight in credit sanctioning processes
Source: ED Press Release dated 19/01/2026