India's Enforcement Directorate (ED) has conducted searches in several locations for evidence in support of allegations of letter of credit (L/C) fraud within or connected with the Varron Group.

The group's owners and employees are being investigated and it appears that bank officials may also have been involved in the fraud.

Widespread searches

Searches have been conducted in Pune, the second largest city in the Indian state of Maharashtra and the location of Varron's headquarters.

ED officers have also searched other locations in Maharashtra, including Ratnagiri, Sangli and Nagpur.

Money laundering link

The alleged US$44 million fraud involved Varron Aluminium and Varron Auto Components according to an ED statement. Officials at Bank of India are also alleged to have participate in the fraud.

ED officials said the searches were part of a probe into alleged money laundering by the firm and its officers.

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