NEW DELHI: Assets worth Rs 43.25 crore of a Hyderabad-based firm have been attached under the anti-money laundering law in connection with an alleged bank loan fraud case, the Enforcement Directorate (ED) said on Thursday.
A provisional order under the Prevention of Money Laundering Act (PMLA) has been issued by the agency attaching 15 land properties located in Telangana, in the case against Sheetal Refineries Ltd and its promoter and managing director Jitender Kumar Agarwal.
The ED case of money laundering was filed on the basis of an FIR registered by the CBI in Bengaluru against the accused for "causing a total loss of Rs 87 crore" to the State Bank of Hyderabad (now SBI) and the Punjab National Bank (PNB). Probe found, the ED said in a statement, that the accused promoters "availed credit facilities from SBH and PNB Hyderabad, by submitting fabricated financial statements, invoices, etc".
"They got letters of credit (LCs) issued from lending banks in the name of related shell entities as if material is being purchased. LCs were discounted by the related entities and the money so received was routed back to the promoters of Sheetal Refinery," it said.
The company "defaulted" in payment of LCs on due date and the devolvement of LCs caused loss to the banks, it alleged. In total, the ED said, the company owes Rs 146 crore to the banks.
"The diverted loan proceeds which are nothing but proceeds of crime were utilised for purchase of properties and to foreclose older loans and were not used for the stated purposes," it said. The agency earlier too had attached assets in this case and with the latest order of attachment of properties worth a purchase value of Rs 43.25 crore, the total now stands at Rs 52.78 crore.