Mumbai: The Enforcement Directorate (ED) conducted search operations across 15 locations in Mumbai, Pune, Goa, and Chennai on Tuesday as part of an ongoing investigation into an alleged Rs 386-crore loan fraud involving Talwalkars Better Value Fitness Limited (TBVFL) and its promoters.
The searches, carried out under the Prevention of Money Laundering Act (PMLA), 2002, led to the seizure of property documents valued at approximately Rs 200 crore, several digital devices, and unaccounted cash amounting to Rs 8 lakh, the central agency said on Friday.
According to officials, the ED’s investigation is based on multiple FIRs registered by state police under various sections of the Indian Penal Code (IPC), 1860. The FIRs allege that TBVFL and its sister concern, Talwalkars Healthclubs Ltd (THL), along with their directors Girish Talwalkar, Prashant Talwalkar, Vinayak Gawande, Anant Gawande, Harsh Bhatkar, Madhukar Talwalkar, Dinesh Rao, Girish Naik, and others defrauded Axis Bank and the erstwhile Laxmi Vilas Bank by diverting loan funds and falsifying financial statements.
As per the ED’s official statement, TBVFL failed to repay loans and Non-Convertible Debentures (NCDs) worth Rs 206.35 crore to Axis Bank and Rs 180 crore to Laxmi Vilas Bank. The ED alleges that the funds, instead of being used for their sanctioned purposes, were funneled into shell companies under the guise of vendor payments. These funds were eventually routed back to entities controlled by the promoters.
Investigators also found that inflated royalty payments and manipulated share subscription premiums were used as additional mechanisms to siphon off funds from the banks.
Among the assets traced during the searches were overseas investments allegedly made from diverted loan funds and immovable properties including flats, villas, commercial spaces, and bungalows located in Mumbai, Nagpur, and Goa.
BVFL is currently undergoing liquidation, with asset auctions being conducted under official supervision. Penalties and market bans imposed by the Securities and Exchange Board of India (SEBI) against the company and its promoters remain effective until early 2025.
