The agency said that a factory building, shops, apartments and land of the company, SA Rawther Spices Private Limited and others were tentatively attached to the PMLA.
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 Private Limited and others were tentatively attached under the Prevention Act. money laundering (PMLA).
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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 SA Rawther Spices Private Limited had defaulted on payment and was declared NPA (non-performing asset) in September 2017. A net amount of 285.81 crore was overdue with the company in addition to unapplied interest of 66.91 crore against mortgaged collateral property 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 Ltd.” . “The branch manager at the time [of J&K Bank] collusion with the promoter / director of the company caused a loss to the public treasury in the amount of 352.72 crore, âthe agency said.
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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 credit, domestic letters of credit (ILC) to transactions with sister companies through the through hosting invoices under ILC. “” SA Rawther Spices Private Limited was found to have used packaging credit loans from J&K Bank and used them for the service of payments to the account term loan from Central Trade Agency Private Limited, which is a sister company of the old company, âhe said. .