ED searches 12 locations In Mumbai, Ahmedabad In Tayal Group Money-Laundering Probe

Mumbai, October 7, 2026: The Enforcement Directorate (ED) has conducted searches at 12 premises in Mumbai and Ahmedabad in connection with a money laundering investigation into alleged bank fraud involving companies of the Tayal group, and alleged attempts to use insolvency proceedings to protect assets attached under the Prevention of Money Laundering Act (PMLA).

The searches were conducted on September 30 by the ED’s Kolkata Zonal Office-II under the PMLA against Tayal Group promoters Pravin Tayal and Saurabh Tayal, among others. During the searches, the agency seized Rs 20 lakh in cash from the residential premises of Pravin Tayal and identified documents relating to several immovable properties allegedly linked to the promoter-directors, which the ED said had not been disclosed to the agency or lending banks.

The searches also led to the identification of fresh non-performing assets (NPAs) allegedly created by group companies, the agency said.

Bank Accounts Frozen

The ED also recovered and seized documents relating to the incorporation and operation of alleged shell companies, besides records of a large number of bank accounts maintained in cooperative banks in the names of associates of the accused. The agency said 215 bank accounts linked to the accused entities and associated persons were frozen under Section 17(1A) of the PMLA.

The agency also searched the premises of certain Resolution Professionals (RPs) as part of its investigation into the alleged nexus between the Tayal Group’s promoter-directors, shell entities and professionals involved in insolvency proceedings.

The investigation stems from ECIRs registered by the ED’s Kolkata Zone-II in connection with alleged large-scale bank fraud involving Tayal Group companies, including K Lifestyle & Industries Ltd, Actif Corporation Ltd and Jaybharat Textiles & Real Estate Ltd. The alleged proceeds of crime in these cases have been estimated at around Rs 820.86 crore, the ED said.

The agency has alleged that the group obtained bank funds by submitting falsified stock statements, inflating production claims and unauthorisedly selling hypothecated machinery. The funds were allegedly layered through shell companies and diverted into real estate assets. One such asset identified during the investigation was Empress Mall in Nagpur, which was provisionally attached by the agency and had an estimated value of around Rs 483 crore in 2019, along with other immovable properties.

Alleged Misuse Of IBC Proceedings

The ED’s investigation has also focused on the alleged use of insolvency proceedings by entities controlled by the Tayal Group to regain control of assets derived from bank funds.

The ED also searched the premises of certain Resolution Professionals (RPs) as part of its probe into an alleged nexus between Tayal Group promoters, shell entities and professionals involved in insolvency proceedings.

A significant part of the investigation concerns the alleged misuse of the insolvency process. The ED has alleged that after it attached certain assets, Corporate Insolvency Resolution Process (CIRP) proceedings were initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC) through shell entities allegedly controlled by the Tayal Group. The agency alleged that these entities were projected as creditors to protect the assets allegedly acquired from bank funds.

The ED has alleged that these entities acted as sham creditors and that the Resolution Professionals admitted unverified and inflated claims of related parties. The agency suspects that this reduced the voting share of secured lenders and undermined the insolvency process.

The agency has also alleged that the RPs filed applications seeking to set aside PMLA attachments and suppressed adverse orders in proceedings before courts and tribunals. It further alleged that encumbrances were created over attached properties, preventing the ED from taking possession of rental income running into several crores.

According to the agency, the rental income continued to be received by companies allegedly floated and controlled by the accused persons.

The ED said its investigation has revealed an alleged nexus between the Tayal Group’s promoter-directors, shell companies and certain Resolution Professionals, who allegedly worked together to divert bank funds, conceal proceeds of crime and frustrate proceedings under the PMLA.

Similar Modus Operandi In Ahmedabad Probe

The ED said its investigation has also uncovered a similar modus operandi in a separate case being investigated by its Ahmedabad Zonal Office.

In that case, the agency alleged that the Tayal Group attempted to frustrate PMLA attachment proceedings by initiating insolvency proceedings against Vidhant Realty Private Limited through another group entity, Kausar Textiles Pvt Ltd.

Also Watch:

According to the ED, Cubical Realty Pvt Ltd subsequently emerged as the Successful Resolution Applicant (SRA). The agency has alleged that this was in violation of Section 29A of the IBC, as the SRA was beneficially owned by members of the Tayal family, including Pravin Kumar Tayal and Navin Kumar Tayal.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/