<h1>Former MD Arrested Under Anti-Money Laundering Law for Rs 1,740 Crore Bank Loan Fraud Using Shell Companies</h1> A former managing director of a liquidated premium rice processing company was arrested under the anti-money laundering law in connection with an alleged bank loan fraud involving approximately Rs 1,740 crore. The Enforcement Directorate (ED) identified the individual as a prime accused for manipulating the company's auction process during liquidation by using over 75 shell entities registered under relatives' names to facilitate property purchases, thereby bypassing legal and financial scrutiny. The ED uncovered benami assets valued at over Rs 200 crore, suspected to have been acquired with diverted bank funds. Following custodial remand, the accused was sent to judicial custody until August 27. The case originates from a 2020 FIR filed by the Central Bureau of Investigation, and the ED continues to investigate the illicit fund trail and other potential participants. Luxury vehicles seized in the case have been declared proceeds of crime.