New Delhi, Sep 9 (PTI) The Enforcement Directorate on Tuesday conducted searches in Delhi and Madhya Pradesh as part of a money laundering investigation linked to an alleged bank loan fraud case worth Rs 273 crore, official sources said.

A total of ten premises, including one in Bhopal, are being covered by the Delhi zone of the federal probe agency in the case against a company named Era Housing and Developers India Private Ltd. (EHDL) and its promoters.

The action is being undertaken under the Prevention of Money Laundering Act (PMLA), the sources said.

The ED probe stems from a CBI FIR that was filed on the allegations that the company and its promoters/directors "siphoned off" the loan funds of RS 273 crore provided by the Industrial Finance Corporation of India (IFCI).

It is alleged that the loan funds were "diverted" to some related entities of EHDL who were "not engaged" in any genuine business, the ED sources alleged. PTI NES DV DV

Money laundering probe under PMLA leads to searches in alleged bank loan diversion by housing developer and promoters. Searches were conducted by the Enforcement Directorate in Delhi and Madhya Pradesh under the Prevention of Money Laundering Act in an investigation arising from a criminal FIR alleging that Era Housing and Developers India Pvt Ltd and its promoters diverted and siphoned loan funds to related entities not engaged in genuine business.