CHENNAI:The Enforcement Directorate has attached 37 properties worth Rs 328 crore in a bank loan fraud case against Nathella Sampath Jewellery Private Limited (NSJPL) promoters-cum- directors and others under the Prevention of Money Laundering Act, 2002.
The NSJPL is engaged in sale of gold jewellery, silver articles and jewellery made of precious and semi-precious stones, with its showrooms located in T Nagar, Velachery, Tambaram, Anna Nagar and Puraswalkam in Chennai and also in Hosur and Vellore.
Enforcement Directorate Joint Director K S V V Prasad said that investigations were launched under the Prevention of Money Laundering Act in April, 2018, based on an FIR registered by the Central Bureau of Investigation (CBI) Bank Fraud & Security Cell, Bengaluru.
The FIR was registered following a complaint by the State Bank of India, the lead bank of consortium of banks, which had provided various loans to the NSJPL.
It was complained that since 2009, the NSJPL promoters had unduly enjoyed bank borrowings in the form of cash credit facilities to the tune of several crores of rupees from a consortium of banks led by the SBI.
Alleging that the promoters have been misrepresenting and falsifying the books of accounts and financial statements of the company for the purpose of availing credit facilities from the lenders, the Enforcement Directorate said that this had caused a wrongful loss of about Rs 380 crore as on February 1, 2018, to the consortium of banks and a corresponding gain for themselves.
Investigations revealed that the NSJPL had obtained loans fraudulently with the help of falsified statements. Stocks reported to banks were at about Rs 495 crore, as on March 31, 2017. However, as per the forensic audit conducted, the actual stocks could only be about Rs 31 crore. Similarly, the sales reported for 2016-17 were Rs 1,517 crores whereas the actual sales as per forensic audit was about Rs 157 crore. Similar is the case with purchases, which were reported at Rs 1,591 crore as against the actual figure of Rs 61 crore, the ED release said.
The investigation has resulted in identification of 12 immovable properties worth Rs 113 crore which the promoters of the NSJPL have derived from the crime proceeds. The properties included their showroom at Tambaram, Chennai, property at Luz Church Road, Mylapore, a property at Landons Road, Kilpauk, agricultural land at Minjur and a school at Ambattur.
In addition to it, the investigation has led to the identification of 25 other immovable properties, valued at about Rs 215 crore, involved in money laundering, which included their residential property at Kilpauk, a wedding hall at Koyambedu, their show rooms at Anna Nagar & Purasawalkam, their registered office at T Nagar, their beach house at Uthandi, and other commercial and residential land and buildings in Chennai.
‘Mortgaged properties’
Mostly, properties identified by investigative agencies were mortgaged with financial institutions outside the consortium of banks. Investigations revealed that the crime proceeds were used for payment of the monthly instalments towards the loans
Unaccounted cash seized in raid at co-op pump
Chennai: Sleuths from the Directorate of Vigilance and Anti-Corruption have conducted a surprise raid at four co-operative petrol pumps in the city and seized around Rs 34,169 of unaccounted money, according to a release from the department. Based on a tip-off that some staff and officials working at the Tamil Nadu Industrial Co-Operative Department are indulging in corruption by swindling money from four petrol bunks, the raid was conducted. During the surprise check, they seized Rs 34,169 unaccounted cash at the Chennai Auto Drivers’ Industrial Co-operative Society, Pooonamallee High Road, along with incriminating documents.