The Directorate of Enforcement (ED) seized assets worth more than 145 crore of a Bengaluru-based spice company in a money laundering investigation linked to alleged fraud on loans to the J&K Bank.
The agency said in a statement on Wednesday that a factory building, shops, apartments and land of the company, SA Rawther Spices, and others were tentatively attached under the Prevention Act. money laundering (PMLA).
The total value of the attached properties is 145.26 crore, he said. The ED case stems from an FIR filed by the JK Police Anti-Corruption Bureau against the company and its promoter director Syed Anish Rawther, then director of the J&K Bank branch located at BU Infantry Road in Bengaluru and other officials from the same bank. , in August 2019.
âIn the FIR it was alleged that Rawther Spices SA was in default and was declared NPA (non-performing asset) in September 2017. A net amount of 285.81 crore was unpaid with the company in addition to the unapplied interest of 66.91 crore against mortgaged collateral assets of 171 crore, âthe ED said in a statement.
During the same period, he said, the company “also borrowed 16.5 crore from HDFC Bank and 25 crore from RBL Bank and mortgaged the same property, which was already mortgaged from J&K Bank.”
“The then branch manager (of J&K Bank), in collusion with the promoter / manager of the company, caused a loss to the treasury in the amount of 352.72 crore,” said the agency.
The company obtained several loans and used them to export goods mainly to related parties and the export earnings were never realized in India, she claimed.
The company also diverted funds to sister / group companies by adjusting their overdue export invoices by releasing new packaging credits, domestic letters of credit (ILC) to transactions with sister companies through the through hosting invoices under cover of ILC. “” It was found that Rawther Spices SA had received packaging credit loans from J&K Bank and used them for the service of payments to the loan account term of the Central Trade Agency, which is a sister company of the old company, âhe said.