PGC CORPORATION DIRECTORS PREM, AADITH D. VIKRAM UNDER SCANNER; ₹82 LAKH CASH, LUXURY VEHICLES, DIGITAL DEVICES AND DOCUMENTS SEIZED
CHENNAI, SEPTEMBER 22: The Directorate of Enforcement (ED), Chennai Zonal Office, has conducted search operations at six residential and office premises in Chennai and Tiruppur in connection with a money-laundering investigation into an alleged ₹116.79 crore bank fraud involving M/s PGC Corporation Ltd. and others.
According to an ED press release dated September 21, 2026, the searches were conducted on September 18, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED said the money-laundering investigation was initiated on the basis of an FIR registered by the CBI, EOB Chennai, under various provisions of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, concerning an alleged bank fraud involving Indian Overseas Bank (IOB).
₹116.79 CRORE IOB LOAN FRAUD UNDER INVESTIGATION
The ED stated that M/s PGC Corporation Ltd. and its directors D. Prem, Aadith D. Vikram and K. Kaleeswaran, along with certain unknown public servants and private persons, are under investigation in the case.
According to the agency, PGC Corporation Ltd. had availed loan facilities from Indian Overseas Bank.
The bank account was reportedly declared a Non-Performing Asset (NPA) in 2013 and was subsequently classified as fraud in 2020, the ED said.
The agency stated that its investigation revealed allegations that false and manipulated financial statements for the financial year 2011-12 were submitted to IOB with the alleged intention of fraudulently enhancing credit facilities.
The ED further alleged that the enhanced credit facilities were subsequently misused and diverted, including transfers to personal accounts, foreign entities and through alleged round-tripping of funds.
NETWORK OF FIRMS ALLEGEDLY USED FOR FUND DIVERSION
The ED said its investigation revealed that D. Prem and Aadith D. Vikram allegedly created a network of companies and firms in India and abroad through which loan funds were allegedly diverted and shown as investments.
According to the agency, substantial amounts of the loan funds were allegedly remitted abroad in the guise of investments.
The ED further alleged that the funds were subsequently round-tripped back into India and utilised for local business expenses.
The agency also stated that approximately ₹235 crore belonging to M/s PGC Corporation Ltd. was allegedly sold to related entities without actual receipt of sale proceeds, after the bank had initiated recovery proceedings in connection with the loan.
According to the ED, these related entities were subsequently allegedly allowed to close without obtaining approval from the lenders.
₹82 LAKH CASH, TWO LUXURY VEHICLES AND DIGITAL DEVICES SEIZED
During the search operations, the ED stated that it found evidence indicating that D. Prem and Aadith D. Vikram allegedly maintained a luxurious lifestyle, with certain properties and assets allegedly held in the names of their spouses and relatives.
The agency further alleged that new businesses were established in the names of spouses and employees, who were allegedly managing and controlling the affairs of these entities.
During the searches, the ED said it recovered and seized approximately ₹82 lakh in unexplained cash, besides other assets and material.
The seized items reportedly include:Unexplained cash of approximately ₹82 lakh.Two luxury vehicles.Laptops.Pen drives.Mobile phones.Property-related documents.Other incriminating documents.Digital evidence
The ED said the seized documents, electronic devices and digital evidence are being examined as part of the ongoing investigation.
ED PROBES MONEY TRAIL AND ALLEGED ROUND-TRIPPING
The investigation is focused on the alleged diversion of bank loan funds, creation and use of related entities, overseas transactions, alleged round-tripping of funds and movement of assets, according to the Enforcement Directorate.
The agency is examining the financial transactions, business entities and documents recovered during the searches to establish the alleged money trail and proceeds of crime, as the investigation progresses.
FURTHER INVESTIGATION UNDERWAY
The Directorate of Enforcement said that further investigation is under progress in the case.
The allegations against the company, its directors and other persons are based on the ED’s investigation and the agency’s official press release. The allegations remain subject to investigation and judicial proceedings, and guilt or legal liability can only be determined by the competent court in accordance with law.(KNC)
