Insolvency and Bankruptcy Code 'misuse' case: ED conducts searches at several locations in Kolkata
The Enforcement Directorate conducted searches in Kolkata regarding a money-laundering investigation into the Tayal Group. The group is accused of bank loan fraud and manipulating the Insolvency and Bankruptcy Code to re-acquire assets through shell entities.
Why it matters
This case highlights ongoing efforts by Indian authorities to curb the misuse of insolvency laws by corporate promoters to evade debt obligations.
“The Enforcement Directorate (ED) on Wednesday (September 30, 2026) conducted searches at a dozen locations in Kolkata in a money-laundering investigation against a Kolkata-based group accused of a bank loan fraud exceeding ₹820 crore and the subsequent "misuse" of the Insolvency and Bankruptcy Code (IBC),” officials said.
Agency officials alleged that the Tayal Group induced banks through "false" declarations regarding production capacity and machinery, falsified stock statements, and the unauthorised sale of hypothecated machinery.
“Twelve premises located in Kolkata were covered as part of the searches conducted under the anti-money laundering law,” the officials said. The company or its representatives could not be contacted for a comment.
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