LUCKNOW: A Special Court under the Prevention of Money Laundering Act (PMLA) in Lucknow has taken cognisance of the Enforcement Directorate’s (ED) prosecution complaint against M/s JVL Agro Industries Ltd. and 24 others in connection with an alleged bank fraud and money laundering case involving wrongful losses of about Rs 1,992 crore to a consortium of lending banks.The prosecution complaint was filed by the Allahabad Sub-Zonal Office of the Enforcement Directorate before the Special PMLA Court on November 25, 2025. In an order dated July 7, 2026, Special Judge (PMLA) Madhu Dogra (HJS) took cognisance of offences under Section 3 read with Section 70 of the Prevention of Money Laundering Act, 2002, punishable under Section 4 of the Act, against 25 accused persons and entities.Probe originated from CBI bank fraud caseThe ED initiated its money laundering investigation on the basis of an FIR and chargesheet filed by the Central Bureau of Investigation (CBI), Lucknow, in connection with an alleged bank fraud involving JVL Agro Industries Ltd., its promoters and other associates. The predicate case pertains to offences registered under various provisions of the Indian Penal Code.Alleged diversion of loan funds through shell companiesAccording to the ED, its investigation revealed that JVL Agro Industries Ltd., under the control of its promoter Satya Narayan Jhunjhunwala, allegedly conspired with associates to divert and siphon off working capital funds through a network of shell companies allegedly controlled by Anil Kumar Khemka.The agency alleged that the diverted funds were layered through several group companies, promoters, key managerial personnel and associates before being routed back into JVL Agro Industries through preferential warrants and equity subscriptions.The ED claimed that this arrangement was designed to artificially increase promoter shareholding, manipulate the company’s capital structure and conceal the true source of funds.Financial statements allegedly manipulatedThe investigation further found that the company allegedly manipulated its books of accounts and financial statements by creating fictitious business transactions, inflating turnover, falsifying inventory records and concealing foreign exchange losses.According to the ED, these allegedly falsified financial statements enabled the company to obtain and continue receiving enhanced credit facilities from a consortium of banks despite its deteriorating financial condition.The agency alleged that the fraudulent conduct resulted in wrongful losses of approximately Rs 1,992 crore to the lending banks after the loan accounts eventually turned into Non-Performing Assets (NPAs).Searches, evidence and property attachmentsDuring the investigation, ED officials conducted searches under Section 17 of the PMLA at 13 premises linked to the accused, resulting in the seizure of documents and digital evidence.The agency recorded statements of the accused and witnesses under Section 50 of the PMLA and collected banking records, company documents, financial statements and other documentary evidence as part of the investigation.The ED said it has provisionally attached movable and immovable properties worth Rs 878.67 crore under the provisions of the PMLA. The attachment orders have subsequently been confirmed by the Adjudicating Authority under the Act.Charges against 25 accusedBased on the evidence collected during the investigation, the ED filed its prosecution complaint against 25 accused persons and entities, including M/s JVL Agro Industries Ltd., promoter Satya Narayan Jhunjhunwala, Anil Kumar Khemka, and several companies and individuals allegedly involved in laundering the proceeds of crime.With the Special Court taking cognisance of the complaint, the prosecution under the Prevention of Money Laundering Act will now proceed before the trial court.The Enforcement Directorate said further investigation into the case is continuing.
