Hyderabad: In a fresh crackdown on alleged bank fraud, the
Enforcement Directorate has provisionally attached immovable properties worth ₹26.8 crore in connection with a money laundering case linked to Sowbhagya Ispat India Pvt Ltd (SIIPL).
The action was taken by the agency's Hyderabad zonal office under provisions of the Prevention of Money Laundering Act. According to the ED, the attached assets include residential flats, a residential house and open land parcels.
The ED said its probe began after an FIR registered by the CBI, Bengaluru, under charges of criminal conspiracy, cheating, forgery and provisions of the Prevention of Corruption Act.
The case relates to alleged fraud on
Andhra Bank — now merged with Union Bank of India — by SIIPL, its directors and others, resulting in a wrongful loss to the bank, the ED said.
Diversion of funds
According to investigators, SIIPL had availed term loans and working capital facilities from Andhra Bank for setting up and expanding a steel manufacturing unit. However, the ED alleged that the company obtained enhanced credit facilities by submitting fabricated stock statements, inflated financials, forged documents and false certificates.
The agency said the funds were diverted and siphoned off instead of being used for the sanctioned purposes. The money was allegedly routed through related entities and accommodation entry providers using circular transactions and fictitious turnover.
The ED pegged the proceeds of crime at ₹46.5 crore. Of this, the bank has recovered about ₹15.5 crore. Properties worth ₹26.86 crore have now been identified and attached as part of the recovery process.
Further investigation in the case is underway, the agency said.
Sudhakar Reddy Udumula is the Editor (Investigation) at the Times...
Read MoreSudhakar Reddy Udumula is the Editor (Investigation) at the Times of India, Hyderabad. Following the trail of migration and drought across the rustic landscape of Andhra Pradesh and Telangana, Sudhakar reported extensively on government apathy, divisive politics, systemic gender discrimination, agrarian crisis and the will to survive great odds. His curiosity for peeking behind the curtain triumphed over the criminal agenda of many scamsters in the highest political and corporate circles, making way for breaking stories such as Panama Papers Scam, Telgi Stamp Paper Scam, and many others. His versatility in reporting extended to red corridors of left-wing extremism where the lives of security forces and the locals in Maoist-affected areas were key points of investigation. His knack for detail provided crucial evidence of involvement from overseas in terrorist bombings in Hyderabad.
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