The ED attached immovable and movable properties worth Rs 53.95 crore in a bank fraud by a private company that resulted in a loss of over Rs 2,200 crore to a consortium of banks led by Indian Overseas Bank and 16 other banks, an official said on Monday.

The Directorate of Enforcement (ED), Mumbai Zone-I, provisionally attached the assets of Parekh Aluminex Limited (PAL) under the provisions of the Prevention of Money Laundering Act. (MLA), 2002.

Till date, the ED has attached total assets of Rs 546 crore in this case, the statement said.

The ED investigation was initiated on the basis of an FIR registered by CBI, EOW Mumbai and EOB Mumbai against Parekh Aluminex Limited, and others for offences under Sections 420 and 120-BIPC, 1860 and Sections 13(1)d) and 13(2) of the Prevention of Corruption Act, 1988.

Investigation has revealed that PAL fraudulently obtained loan from a consortium of banks by submitting inflated stock and debtor statements and later loan accounts of PAL were declared NPA for an amount of Rs 2,296 crore, the ED said.

The ED’s Investigation revealed that JK Shah Group assisted in the diversion of the Proceeds of Crime amounting to Rs 110.54 crore through various entities and persons.

One of the beneficiaries of the Proceeds of Crime received and enjoyed Rs 70.25 crore, forming part of the total Proceeds of Crime of Rs 2,296.58 crore, the ED said.

The ED had already attached assets worth Rs 493 crore in this case. A prosecution complaint (charge sheet) has also been filed before the Special Court (PMLA), Mumbai, which has taken cognisance of the offence, said the statement.

The conspirators inflicted a wrongful loss on a consortium of banks led by Indian Overseas Bank and 16 other banks, and the ED is examining the incriminating documents recovered during search operations to identify other players in the bank fraud, said the statement.

A late-night encounter took place between the police and suspected criminals in Noida’s Sector 63 area on Sunday night, resulting in two accused sustaining bullet injuries and the arrest of two others.

Police recovered illegal firearms, live cartridges, knives, and two motorcycles allegedly used in robbery incidents from the accused.

According to the police, the four suspects were travelling on two motorcycles and were allegedly on their way to commit a crime when a police team conducting vehicle checks near the Sector 62 roundabout signalled them to stop.

DCP Praveen Ranjan Singh says, “In accordance with the directions of the Gautam Buddha Nagar authorities, tonight the Sector 63 police station team was conducting checking operations at the Sector 62 intersection. Four individuals riding on two motorcycles were spotted approaching. When the police attempted to stop them for checking, both motorcycle riders turned back and sped off…”

During the pursuit, the accused crossed the S-Block intersection and entered the green belt area. When police teams tried to intercept them, they reached the Bahalolpur underpass. Realising they were surrounded, the suspects allegedly opened fire on the police. The police retaliated in self-defence, during which two of the accused were shot in the legs and were overpowered.

Following the encounter, police launched a combing operation in the area and apprehended the remaining two suspects, identified as Shankar Sharma and Kapil Kashyap. With their arrest, all four accused involved in the incident were taken into custody.

Police seized two country-made pistols, cartridges and two knives from the accused. The two motorcycles allegedly used in criminal activities were also impounded.

Preliminary investigations revealed that the accused used to offer lifts to unsuspecting people on their motorcycles and subsequently rob them. Police said all four have extensive criminal records, and efforts are underway to gather details of their previous cases and other criminal activities.

DCP Singh said police teams have been carrying out continuous checking drives and action against criminals under directives issued by the Gautam Buddh Nagar administration.

Samajwadi Party (SP) leader Mohammad Azam Khan was on Sunday sent to 14 days of judicial custody a day after being arrested by the Enforcement Directorate (ED) in connection with a Jauhar University-linked money laundering case.

The order was passed by the Ghaziabad MP-MLA Court, which directed that Khan will remain in judicial custody until November 13.

Speaking to reporters, the SP leaders’ lawyer, Danish Ali, said: “Today, Azam Khan has been remanded to judicial custody. We argued that since this is a 2019 case, the authorities could have taken action through a B-Warrant when he was already in custody. There has also been a violation of Section 19.”

“The ED has sought his custody to further interrogate him,” he added.

The Samajwadi Party leader’s arrest by the ED on Saturday came close to the provisional attachment of land and buildings belonging to Mohammad Ali Jauhar University in Uttar Pradesh’s Rampur district, valued at Rs 426.46 crore, in connection with the money laundering probe involving the Maulana Mohammad Ali Jauhar Trust, Azam Khan, and others.

The fresh trouble for Azam Khan came in the backdrop of a short-lived relief offered to him and his son Abdullah Khan by the Allahabad High Court, which suspended their sentence in the dual PAN card case and also granted them bail on Thursday.

In the money laundering case, the ED attached assets of the University that have a current estimated market value of around Rs 1,170 crore.

The university campus, located at Jauhar Nagar in Rampur’s Singhankhera village, is owned by the Maulana Mohammad Ali Jauhar Trust, which was founded and is controlled by Azam Khan, who also serves as the institution’s honorary Chancellor, said the ED.

The investigation stems from 26 FIRs registered at Azeem Nagar police station in Rampur, alleging that agricultural land belonging to farmers was forcibly acquired for the university.

The ED said enquiries by the district administration also found that nearly 34 acres of enemy property at Singhankhera village had allegedly been occupied for the university despite the cancellation of the land lease. The land has since been recovered by the Custodian of Enemy Property through the district administration.