New Delhi, Oct 31 (IANS): The Enforcement Directorate (ED) on Saturday said it has carried out searches at six locations belonging to an Ahmedabad-based True Value group and another firm and seized around Rs 6 crore in connection with a bank fraud case.

These firms, the agency said, caused loss to a consortium of banks amounting to Rs 488 crore.

The agency carried out searches at the residential and office premises of the firm True Value Group and another Vipul and Manish Associates on Thursday and Friday, resulting in seizure of huge cash in Indian currency totalling to Rs 5.99 crore and foreign currency along with various incriminating documents.

The ED initiated investigation under Prevention of Money Laundering Act on the basis of six First Information Reports (FIRs) registered by the Central Bureau of Investigation (CBI), Anti-Corruption Branch, Gandhinagar, wherein it has been alleged that Ardor Group of Companies and its directors, in connivance with unknown bank officials, had cheated and caused wrongful loss to the consortium of banks amounting to Rs 488 crore.

Investigation conducted so far resulted into identification of assets totalling to Rs 204.27 crore, said the ED.

"These assets being the part of proceeds of crime have been provisionally attached under PMLA," an ED official said.

Vipul and Manish Associates and True Value floated numerous dummy companies and made their relative and associate persons directors of these companies to do circular trading with purpose to inflate books of accounts of Ardor Group Companies to facilitate them for obtaining huge funds from consortium of banks which later become Non-Performing Asset (NPA).