Bank loan

Execution management attaches assets of Rs 42 crore to Kolkata company – The New Indian Express


Through PTI

NEW DELHI: Assets worth over Rs 42 crore of a Kolkata-based company seized in connection with money laundering investigation linked to alleged bank fraud case, announced on Monday the Directorate of Execution (ED).

An interim order for the seizure of 11 properties of Shree Mahalaxmi Corporation Pvt Ltd has been issued under the Money Laundering Prevention Act (PMLA).

The total value of assets, according to the ED, is Rs 42.36 crore.

The agency said its investigation found that the Rs 164 crore loan amount taken from the SBI was “misappropriated after rotating between bank accounts run by various entities and coloring them as real business transactions.” “.

“It has been found that various Letters of Credit (LC) have been opened on behalf of certain companies against the credit facilities and the same have been discounted on the basis of false invoices, challans etc”, he asserted in a statement.

The LC product, the managing director said, was then laundered and siphoned off.

The money laundering case is based on a 2017 FIR and a CBI indictment sheet (filed in 2019) against the company, its directors and a few others “for defrauding the State Bank of India (SBI) in height of Rs 164 crore by availing loan on the basis of false / falsified documents and using said loan amount for purposes other than those for which it was sanctioned “.