19 July 2024

Mumbai, July 19, 2024 — Purushottam Chhaganlal Mandhana, the former Chairman and Managing Director of Mandhana Industries Limited (MIL), was arrested by the Directorate of Enforcement (ED) on July 18, 2024, under the Prevention of Money Laundering Act (PMLA), 2002. This arrest follows a complaint from the Bank of Baroda, which alleges that MIL and its directors defrauded a consortium of banks of Rs. 975.08 Crore.

Mandhana was presented before the Hon’ble Special Court (PMLA) in Mumbai on July 19, 2024, where the court granted ED a six-day custody for further investigation. The ED’s probe, initiated based on an FIR filed by the Central Bureau of Investigation (CBI), revealed that Mandhana, along with other MIL directors, orchestrated a complex scheme to defraud the banks. The investigation uncovered that Mandhana used fictitious entities for money laundering and diverted funds from the company’s accounts to settle personal debts and enrich himself and his family.

In connection with this case, the ED had conducted search operations on June 26 and July 5, 2024. These searches yielded crucial evidence, including incriminating documents, property records, and a substantial cache of assets. Among the seized items were gold jewellery worth approximately Rs. 3 Crore, high-end vehicles like Lexus and Mercedes Benz, and several luxury watches, including Rolex and Hublot. The ED continues to pursue the investigation, aiming to hold those responsible accountable and recover the defrauded amounts.