ED Raids Ex-Promoters, Directors of Kwality Ltd

The Enforcement Directorate (ED) raided multiple locations in the national capital in connection to a bank loan fraud against former promoters of Kwality ltd. Close to about 12 places were searched under the provisions of the Prevention of Money Laundering Act (PMLA), the sources said.

The case boils to 2020 wherein CBI filed an FIR against the company and its directors for cheating a consortium of 10 banks to the tune of ₹1,400 crore. This was done by inflating the financial statements and diverting borrowed funds.

Begun as an ice-cream manufacturing company, Kwality Ltd. diversified its portfolio into milk-based products. Sanjay Dhingra, Siddhant Gupta and Arun Srivastava were the company’s former directors.