More action on Zoom Developers' properties; banks under scanner

After attaching 1,280 acres of Zoom Developers' land in California, the Indore unit of Enforcement Directorate (ED) may crack down on more properties the company might have in India and abroad, sources said.

The California property was purchased by one of the promoters, Vijay Chaudhary, in 2007. Its market value was estimated to be Rs 1,000 crore. This property was not disclosed anywhere by the owners, either in the income tax returns or in their book of accounts. ED Indore got a tip-off about the California property after last month's arrest of Sharad Kabra, one of the directors of Zoom. The agency is "gathering evidence" against Chaudhary, who is absconding, in connection with the bank loan fraud case. The role of banks that granted loans to Chaudhary is also under scanner.