Zoom developer nabbed over defrauding bank

Mumbai: The Enforcement Directorate (ED) on Wednesday arrested the director of Zoom developers Private Limited (ZDPL) in a money laundering case wherein the company is said to have defrauded the bank for over Rs 2,600 crore.

The arrested accused identified as Vijay M. Chaudhary has been handed over to Indore where one of the cases has been registered.

ED sources said he was wanted in the case since months and was arrested in the wee hours of Wednesday. Choudhary was booked under provisions of the Prevention of Corruption Act (PMLA). The source said that ZDPL had cheated nearly 25 banks to of Rs 2,650 crore. In 2015, the ED booked ZDPL under PMLA based on an FIR filed by CBI for the defrauding. When the case came up for hearing, a court in July 2015, issued an order to attach 1,280 acres of land in California in the United States of America (USA), owned by ZDPL.

ED sources said Choudhary defaulted on loans and defrauded five banks namely — Punjab National Bank, Syndicate Bank, Canara Bank, United Bank of India and Union Bank to the tune of Rs 966 crore.

In addition to this, it cheated 25 other banks totaling the amount to Rs 2,650 crore making it one of the biggest defrauding cases in recent times.

ZDPL and Chaudhary have been accused of issuing fake contracts wherein the paper work was in place but no actual work was conducted.

Despite this, ZDPL kept seeking extension on bank guarantees, counter guarantees by submitting false grounds for extension.

A statement released by ED stated, “Choudhary, along with his associate Sharad Kabra cheated Indian bankers, siphoned off public funds outside the country and acquired assets by way of laundering the illegally generated money through web of companies created in India.”