Lucknow Special Court takes cognizance of ED's JVL Agro money laundering complaint

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JVL Agro money laundering case

Highlights

On July 7, 2026, the Lucknow PMLA Special Court took cognizance in the money laundering case against JVL Agro Industries Ltd. and 25 individuals and entities.
The ED alleges that JVL Agro diverted capital through shell companies and availed loan benefits from a consortium of banks based on fake financial documents, causing a loss of about ₹1,992 crore to the banks.
The ED seized documentary evidence during searches at 13 premises under the PMLA and provisionally attached properties worth ₹878.67 crore, which has been confirmed by the Adjudicating Authority.

This article was translated from the original. Read the original version by our correspondent here.

Court Proceedings and Basis of Investigation

According to the Enforcement Directorate, the Allahabad Sub-Zonal Office, Prayagraj, has taken cognizance of the prosecution complaint filed under the Prevention of Money Laundering Act, 2002. The complaint was filed before the Special Court, PMLA, Lucknow on 25.11.2025, and in the order dated 07.07.2026, Judge Madhu Dogra's court took cognizance against 25 accused individuals and entities under Section 3 read with Section 70 and Section 4.

The ED initiated this investigation based on the FIR and chargesheet of the Central Bureau of Investigation, Lucknow. The case pertains to alleged bank fraud by M/s JVL Agro Industries Ltd., its promoters, and other associates under various sections of the Indian Penal Code.

According to the ED's investigation, the company, under the control of its promoter Satya Narayan Jhunjhunwala, allegedly conspired with associates to divert and siphon off working capital through a network of shell companies. The agency claims these companies were controlled by Anil Kumar Khemka, and the funds were layered through various group entities, promoters, key managerial personnel, and associates, and later routed back into JVL Agro Industries Ltd. via preferential warrants and equity subscriptions.

As per the ED, this arrangement artificially increased the promoter's stake, manipulated the company's capital structure, and concealed the true source of funds. The investigation also alleges that the company distorted its accounts and financial statements by showing fictitious business transactions, inflating turnover, manipulating inventory records, and concealing foreign exchange losses.

Impact on Banking Sector and Enforcement Status

The ED alleges that based on these purportedly fake financial statements, the company obtained and continued enhanced credit facilities from a consortium of banks despite its deteriorating financial position. According to the agency, this caused wrongful losses of about ₹1,992 crore to the lending banks, and these loan accounts later turned into Non-Performing Assets.

During the investigation, the ED searched 13 premises under Section 17 of the PMLA, seizing alleged incriminating documents and digital evidence. Statements of accused and witnesses were recorded under Section 50, while banking records, company records, financial statements, and other documentary evidence were also collected.

The agency has also provisionally attached movable and immovable properties worth ₹878.67 crore under the PMLA. According to the ED, these provisional attachment orders have been confirmed by the Adjudicating Authority under the PMLA, while further investigation is ongoing against the 25 accused individuals and entities allegedly involved in laundering the proceeds of crime.

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