ED attaches Rs 20 cr assets of Hy'bad firm in bank fraud case

ED today attached assets worth Rs twenty crore of a Hyderabad-based firm in connection with its money laundering probe against it in a case of alleged bank fraud to the tune of over Rs 126 crore. The agency took over the case from CBI and investigated it under the Prevention of Money Laundering Act (PMLA) and a total of 21 movable and immovable assets of the firm identified as Ms Sheetal Refineries Limited and its Directors have been attached. The agency, in a statement, said the firm caused "loss to the State Bank of Hyderabad (SBH) by way of furnishing forged and fabricated balance sheets, invoices among others." "The total value of attached assets is RS 9.53 crore having a market value of Rs 20 crore approximately," it said. Enforcement Directorate (ED) said its probe "revealed that the firm availed various credit facilities from SBH, Hyderabad by submitting fudged and fabricated financial statements and bogus invoices. They (firm) submitted bogus invoices to bank as if goods were purchased against Letters of Credit in the name of suppliers and later such funds received back by them through other accounts. "In this process, they also floated one proprietary firm in the name of an employee for diversion of funds. Further, certain portion of such diverted funds were used for personal use for purchase of immovable properties among others," the agency said. Investigation also revealed, it said, that the firm had a total outstanding amount payable to SBH of about Rs 126.74 crore as against the value of the properties taken over possession by banks under SARFAESI Act of Rs 87.63 crore (market value) and thereby causing "huge loss" to SBH. In an another case in Kerala, the agency attached assets worth Rs 72 lakh in connection with its PMLA probe in an alleged chit fund-like scheme run by one Rajesh K in the state. The agency said Rajesh "collected an amount to the tune of Rs 13.23 crore from various investors after promising attractive returns from supermarket retail business but instead run illegal money chain business with the help of an associate." It said Rajesh allegedly created companies to "mislead and collect funds from the public which were never returned." ED took over the case after taking cognisance of a Kerala police FIR in the case and the alleged illegal scheme was spread in various districts like Kannur, Thrissur, Kottayam and some in Karnataka. An attachment of assets under PMLA is done to ensure that an accused is not able to derive benefits of their ill-gotten wealth and the affected party can appeal against this order within 180 days of the order before the Adjudicating Authority of the Act.