The Enforcement Directorate (ED) has seized Rs. 82 lakh in cash, two luxury cars, digital devices and property documents linked to benami assets during searches conducted in Chennai and Tiruppur in connection with a Rs. 117.79-crore bank fraud case involving PGC Corporation Ltd.
In a statement dated September 21, the ED said its Chennai Zonal Office II had conducted searches on September 18 at six locations across Tiruppur and Chennai under the Prevention of Money Laundering Act (PMLA).
The ED initiated the investigation based on an FIR registered by the CBI, EOB Chennai, under various sections of the IPC and the Prevention of Corruption Act, 1988, for allegedly cheating Indian Overseas Bank (IOB) of approximately Rs. 117.79 crore. The case involves PGC Corporation and its directors D Prem, Aadith D Vikram and K Kaleeswaran, along with unknown public servants and private persons.
The ED probe revealed that PGC Corporation had availed a loan facility from IOB, with the account being declared an NPA and as fraud by the bank in 2020. Investigation further revealed that the accused submitted falsified and manipulated financial statements for FY 2011-12 to IOB to fraudulently avail enhanced credit facilities and misused the loan funds by diverting them to personal accounts, foreign entities and through round-tripping of funds.
The ED said its probe showed that D Prem and Aadith D Vikram created a network of companies and firms, both domestic and foreign, in which they diverted the loan funds as investments. A substantial amount of the loan funds, which were remitted abroad in the guise of investment, were then round-tripped and used for local business expenses in India.
The inventory valued at over Rs. 235 crore (approximately) of PGC Corporation was sold to related entities without actual receipt of sale proceeds after the bank initiated recovery of the loan. Subsequently, these related entities were permitted to close without approval from the lenders.
ED Chennai Zonal Office II conducted searches on 18.09.2026 across 6 locations in Tiruppur & Chennai under PMLA in a bank fraud case involving M/s PGC Corporation Ltd. During search operation, cash of Rs. 82 Lakhs, luxury vehicles, digital devices & property documents linked to… pic.twitter.com/NWfyfVZeBq
— ED (@dir_ed) September 21, 2026
The ED said that during the search operations, it was found that D Prem and Aadith D Vikram were living a luxurious lifestyle, having properties and assets in the names of their spouses and relatives. It was further found that they had established new businesses in the names of their spouses and employees but were ultimately managing and controlling the affairs of these businesses.
During the search action, unexplained cash amounting to Rs. 82 lakh (approximately), two luxury cars, digital devices such as laptops, pen drives and mobile phones, property documents and incriminating documents were recovered and seized.
