ED had initiated investigations under PMLA against M/s SIS and its Chairman and Managing Director Sunil Surendrakumar Kakkad and others on the basis of the cases registered by the Central Bureau of Investigation under Indian Penal Code and Prevention of Corruption Act.
Kakkad and Director of the company Rajeev Gupta were also arrested during the probe.
During its investigations, it was discovered that the company and its Chairman availed various credit facilities and loans from a consortium of banks on the basis of false and fabricated documents.
"SIS diverted the said loan proceeds for purposes other than specified in the loan application and acquired various immovable assets in the name of his group companies and relatives and thereby caused financial loss to the tune of Rs 867 Crores (approx.) to the Consortium of Banks as the outstanding loan amount became Non Performing Asset," the ED said.
The ED also found out that Kakkad had incorporated various shell companies that were used for layering of money and for purchase of various immovable properties.
Further investigation is underway.