ED attaches 15 properties worth Rs.13.51 cr in bank fraud case
Hyderabad: The Enforcement Directorate (ED) has provisionally attached 15 immovable properties worth more than Rs.13.51 crore in Servomax India Private Limited (SIPL) bank fraud case. The attached properties are in the name of relatives of Directors P Chandrashekhar Reddy and A V Rao and their benamidars. It initiated money laundering investigation on the basis of […]
Hyderabad: The Enforcement Directorate (ED) has provisionally attached 15 immovable properties worth more than Rs.13.51 crore in Servomax India Private Limited (SIPL) bank fraud case. The attached properties are in the name of relatives of Directors P Chandrashekhar Reddy and A V Rao and their benamidars.
It initiated money laundering investigation on the basis of FIR booked by Central Bureau of Investigation (CBI) under various Sections of Indian Penal Code (IPC) against SIPL, its promoters and directors Rao, Chandrasekar Reddy and others for alleged cheating and defrauding public sector banks to the tune of Rs.402 crore, according to a press release.
Investigation by the ED revealed that SIPL had availed loans from consortium of banks including Letters of Credits (LCs), bank guarantees and working capital loan and then diverted the same and did not use loans for the stated purposes besides not repaying the loans.
Fund trail investigation revealed that the company had LCs issued in the name of its related shell entities and without supply of any material, got LCs discounted and routed back the proceeds of LC discounting and promoters used it for their personal gain or to invest as share capital/advance loan in their businesses.
Further, money was also withdrawn in cash and through accounts of its petty employees. During investigation, two benamidars – Atluri Prasad and J. Rajesh of Maruthi Travels – admitted to the laundering of the proceeds of crime.
Despite liquidation of SIPL via National Company Law Tribunal (NCLT), the accused promoters managed to alienate POC and purchase assets in the names of their family members and benami entities.
The press release added the ED identified 15 landed properties in and around Hyderabad and has attached the same under PMLA on March 14, 2022. Earlier, Rao was arrested under PMLA on January 17, 2022 and is in judicial custody.
In a separate case, the ED has provisionally attached immovable properties worth Rs.1.61 crore under PMLA belonging to S Nagraju, Gadiparthi Satyanarayana and K Raju Paranthaman. It initiated money laundering investigation against Nagraju and others on the basis of complaint filed by the DRI under Sections 25A and 29 of NDPS Act against Nagraju and others for illicit manufacturing and trading of ephedrine, a controlled substance under NDPS Act.
Investigation by ED revealed that by indulging in the offence, Nagraju and others generated proceeds of crime to the extent of Rs.5.23 crore by trading in illegally manufactured ephedrine. Investigation revealed that entire transactions have been made in cash without bills and invoices and permits from authorities.
It was further revealed that properties were acquired by the accused by making payments in cash which are the proceeds of crime and accordingly, 16 landed properties located in Telangana and Tamil Nadu valued at Rs.1.61 crore have been provisionally attached under PMLA.
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