CHENNAI: An Enforcement Directorate (ED) probe into Chennai-based Best & Crompton Engineering (BCEPL), a part of Sujana Group of companies, for allegedly defrauding Central Bank of India, Andhra Bank and Corporation Bank, has resulted in attachment of immovable and movable property of Viceroy Hotels, Hyderabad worth Rs 315 crore under the Prevention of Money Laundering Act (PMLA).
KSVV Prasad, Additional Director, Enforcement Directorate, Chennai, told Express that the properties were attached after investigation under PMLA was initiated on the basis of an FIR registered by CBI, Bank Securities and Fraud Cell (BS & FC), Bangalore against the Chennai-based company and its officials, who allegedly conspired from 2010 to 2013 for defrauding Central Bank of India, Andhra Bank and Corporation Bank. The total loss caused to the consortium of banks due to the above fraud was to the tune of Rs 364 crore, he said.
He said that during investigation, searches were carried out at various places in Chennai, Delhi, Hyderabad and New Delhi at the residential and business premises of key officials of BCEPL as well as other companies of Sujana Group.
During these searches incriminating material including documents and electronic devices were seized. In the business premises of Sujana Group at Nagarjuna Hills, Hyderabad, 124 rubber stamps of different companies or entities were seized, he said. Investigation revealed that several shell companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one Mahal Hotels which is also a shell company floated by Sujana Group. Prasad said Viceroy Hotels, Hyderabad, admitted their liability towards Mahal Hotels as Rs 315 crore.