Rs 450 crore bank loan frauds: ED raids 15 locations in Mumbai, Goa, Pune, Chennai related to health and fitness firm

The ED started its investigation on the basis of FIRs registered by various police authorities, including Mumbai's Economic Offences Wing (EOW), against TBVFL and its promoters and directors

By: Express News Service

Mumbai | July 11, 2025 22:41 IST

Digital devices and unaccounted cash of Rs 8 lakh were also seized (File)

The Enforcement Directorate (ED), Mumbai, on Wednesday carried out a major search operation in 15 locations across Mumbai, Goa, Pune and Chennai in connection with a money laundering probe linked to alleged fraud in bank loans worth Rs 450 crore related to Talwalkar Better Value Fitness Limited (TBVFL), which was once India’s largest chain of gyms and health clubs .

During the searches, in which the premises of company’s directors and top managers were also covered, the agency found various incriminating documents and property papers worth around Rs 200 crore. Digital devices and unaccounted cash of Rs 8 lakh were also seized.

The ED started its investigation on the basis of FIRs registered by various police authorities, including Mumbai’s Economic Offences Wing (EOW), against TBVFL and its promoters and directors. In the cases, allegations were made that TBVFL and its promoters and directors have defrauded Axis Bank and Laxmi Vilas Bank by diverting the loan funds to related entities and manipulation of books of accounts.

The firm has defrauded Axis Bank by not repaying the term loan and non-convertible debentures (NCDs) to the tune of Rs 206.35 crore.

Similarly, Laxmi Vilas Bank has also been defrauded as TBVFL failed to repay the NCDs worth Rs 180 Crore.

Till May this year, atleast five FIRs pertaining to bank loan frauds involving Rs 450 crore were registered against TBVFL.

The ED stated that its investigation revealed that term loan and investment received from NCDs were diverted and utilized for non-sanctioned purposes by TBVFL and its promoters and directors.

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“They transferred the loan amounts to the accounts of shell entities in the garb of vendor payments, which was then routed to related entities of promoters of the group. Further, inflated royalty amounts and share subscription premiums were also paid to divert the bank funds,” the central agency said in a statement released on Friday.

The anti-money laundering agency has also found overseas investments made by the group from the bank funds and immovable asset details of promoters such as flat, commercial spaces, villas, bungalows located in Mumbai, Nagpur and Goa.

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