NEW DELHI: Assets worth Rs 43.25 crore of a Hyderabad-based company have been seized under anti-money laundering law in connection with an alleged bank loan fraud case, the Directorate of Law Enforcement (ED) announced on Thursday.
An interim order under the Prevention of Money Laundering Act (PMLA) has been issued by the agency seizing 15 land properties located in Telangana, in the case against Sheetal Refineries Ltd and its developer and Managing Director Jitender Kumar Agarwal.
The ED money laundering case was filed on the basis of an FIR registered by the CBI in Bengaluru against the accused for ‘causing a total loss of Rs 87 crore’ to the State Bank of Hyderabad (now SBI ) and the Punjab National Bank (PNB). The investigation revealed, the ED said in a statement, that the accused promoters “took advantage of credit facilities from SBH and PNB Hyderabad, by submitting fabricated financial statements, invoices etc.”.
“They obtained letters of credit (LCs) issued by lending banks in the name of related fictitious entities, as if the equipment was purchased. The LCs were discounted by the related entities and the money so received was returned to the promoters of Sheetal Refinery” It said.
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The company “failed” to pay the LCs when due and the assignment of the LCs caused losses to the banks, it alleged. In total, the ED said, the company owes banks Rs 146 crore.
“The misappropriated loan proceeds, which are nothing but proceeds of crime, were used for the purchase of properties and to seize older loans and were not used for the stated purpose,” he said. he declared. Previously, the agency also attached assets in this case and with the latest order for seizure of properties with a purchase value of Rs 43.25 crore, the total now stands at Rs 52.78 crore.