CHENNAI: The Enforcement Directorate (ED) has attached immovable and movable properties totalling Rs 31 crore consisting of one building, 5 flats and fixed deposit of Rs 1 crore under the Prevention of Money Laundering Act in a bank fraud case relating to Zylog Systems Limited.
The ED initiated an investigation on the basis of First Information Report of CBI, Bank Securities and Fraud Cell (BS & FC), Bangalore, against Zylog Systems, Sudarshan Venkatraman, the then chairman and chief executive officer of Zylog Systems, Ramanujam Sesharathnam, the then managing director and chief operating officer of the firm and others.
The FIR of CBI was based on the compliant received from Dena Bank, T Nagar, complaining that these persons floated fictitious shell companies wherein they made the employees of Zylog, directors of the companies.
The fictitious invoices towards purchase of software and hardware were created in the name of these companies and were used to avail the loan of Rs 100 crore from Dena Bank and the same was defaulted in repayment. Probe revealed the said firms had also defaulted bank loans availed from Andhra Bank and Union Bank of India, Chennai, collectively to the tune of Rs 110 crore.