ED case against Hyderabad-based engineering company for defrauding bank of Rs 15 crore

The ED conducted an investigation into the allegations on the basis of FIR registered by CBI, EOW, Chennai against Saisree Engineers Private Limited its Promoters, Directors and others on the complaints made by the bank.

Hyderabad: The Directorate of Enforcement (ED), Hyderabad attached immovable properties worth Rs. 3.11 crore registered in the name of Sagiraju Suryanarayana Raju, Managing Director of Saisree Engineers Private Limited (SEPL) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a case of alleged cheating and defrauding State Bank of India (erstwhile State Bank of Hyderabad), by depositing fake title deeds as collaterals for availing bank finance.

The Enforcement Directorate conducted an investigation into the allegations on the basis of First Information Report registered by CBI, EOW, Chennai against Saisree Engineers Private Limited its Promoters, Directors and others on the complaints made by the bank.

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“As per the FIR, the company and its management hatched a criminal conspiracy and defrauded the bank by producing fabricated / forged documents and fictitious properties as collateral securities for availing credit facilities from the bank to the tune of Rs. 15 crore,” a press release issued by the ED stated.

The Central Bureau of Investigation, Economic Offences Wing, Chennai after completion of its investigation, filed a charge sheet in December 2020 against the company and its directors.

“Investigation revealed that the company, represented by its directors, had availed credit facilities to the tune of Rs. 15 crore from SBI and offered collateral security in the form of immovable property described as non-agricultural land, Visakhapatnam Urban Development Authority. However, the said property was found to be fictitious, which was mortgaged on the basis of fabricated/forged documents,” the ED officials further stated.

The PMLA investigation also revealed that out of facilities disbursed in the cash credit account of the company, funds were dishonestly and fraudulently transferred to the personal account of Suryanarayana Raju maintained with Andhra Bank. Further, rather than receiving funds into SEPL’s SBI loan account, M/s SEPL and its directors had diverted receivables to the tune of Rs. 13.53 crore from its vendor to another bank account of SEPL maintained with Andhra Bank and further diverted the same for SEPL’s business purposes, the ED officials added.

Further investigation is under progress.