Economic Fraud
ED Seizes Rs 814 Crore Worth of Properties from JVL Agro, Maker of ‘Jhoola Dalda’ Brand
On Wednesday, the Enforcement Directorate (ED) reported that it has seized over 520 acres of land, spread across various states and valued at Rs 814 crore, from an Uttar Pradesh-based edible oil manufacturing company. This action is part of an ongoing money-laundering probe connected to a suspected bank loan fraud involving the Varanasi-based JVL Agro Industries Limited, known for its “Jhoola Dalda” brand of vegetable oil. The investigation also targets the company’s promoters, Satya Narayan Jhunjhunwala and Adarsh Jhunjhunwala, who were initially charged by the Central Bureau of Investigation (CBI). The company is presently in liquidation.
The confiscated properties include land totaling 521 acres located in Varanasi (Uttar Pradesh), Rohtas (Bihar), Palam (New Delhi), and Raigarh (Maharashtra). These assets are registered under various names, including JVL Infra Heights Limited, JVL Mega Food Park Private Limited, JVL Cement Limited, Premium Pressure Vessels Private Limited, and the promoters themselves. The ED conducted raids on these entities in June.
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JVL Agro Industries operated units across Uttar Pradesh, Rajasthan, Bihar, and West Bengal, focusing on manufacturing and trading various edible oils. The company imported crude oil and other raw materials from countries like Singapore and Malaysia through its foreign subsidiary, JVL Overseas Pte Limited.
According to the ED, JVL Agro Industries secured credit facilities and loans from banks by presenting falsified and inflated financial statements. The company allegedly diverted funds through multiple group entities. Satya Narayan Jhunjhunwala is accused of creating numerous “paper entities” with nominal directors, who were primarily daily-wage workers and his staff, to funnel the funds. He also established two trusts, Mahalaxmi Investment Trust and Ratnapriya Investment Trust, into which he transferred nearly all shares of these paper entities, which are under his control.
The ED claims this scheme resulted in losses amounting to Rs 1,992 crore for a consortium of banks led by the Bank of Baroda.