ED Takes Action: 25 Accused in Rs. 950 Crore Fraud Case Linked to Sunstar Overseas Ltd.
26 September 2024
The Directorate of Enforcement (ED) in Gurugram has filed a Prosecution Complaint against M/s Sunstar Overseas Ltd. (SOL) and 24 other individuals/entities in a major fraud case, with the Special Court in Tis Hazari, Delhi, taking cognizance on September 25, 2024. This investigation stemmed from an FIR by the CBI, which accused SOL and its former directors of committing fraud, misappropriation, and cheating, resulting in losses exceeding ?950 Crore to a consortium of nine banks.
The ED's findings revealed that while SOL had admitted claims of Rs. 1,274.14 Crore, it was acquired during Corporate Insolvency Resolution Process (CIRP) proceedings for only Rs. 196 Crore by a shell entity, M/s Umaiza Infracon LLP. In July 2024, the ED arrested three individuals linked to the scheme, and on August 26, 2024, they provisionally attached assets worth Rs. 294.19 Crore, including land, buildings, and bank accounts.
The investigation uncovered a complex conspiracy involving the diversion of funds to regain control of the insolvent company. The ED highlighted how the accused manipulated the process through a network of associates to present a façade of legitimacy while siphoning off public funds, including transferring money abroad. In total, 25 individuals/entities have been implicated in this extensive case of financial misconduct.