HYDERABAD: The Enforcement Directorate, Hyderabad Zonal Office, has successfully accomplished the process of restitution of properties worth Rs 30.71 crore to the State Bank of India in connection with a money laundering case against M/s Sheetal Refineries Limited (SRL) and others.
Based on ED’s initiative, the SBI filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act, 2002 before the Special Court of the Metropolitan Sessions Judge, Hyderabad, for release of immoveable properties.
Following the ED’s appeal to facilitate restitution of the property to the SBI in public interest, the court on July 2 ordered release of immoveable properties of M/s Sheetal Refineries Limited and its directors.
ED launched an investigation into a money laundering case against the firm and others who availed various credit facilities from a consortium of banks, including SBI and PNB, and defaulted on repayment resulting in their debts becoming non-performing assets (NPAs). SRL availed itself of 21 fraudulent Letters of Credit from these banks, based on fake and forged invoices.
The promoters diverted the funds from the devolved Letters of Credit into SRL’s bank accounts as well as those of their own and family members. The proceeds of crime were partly withdrawn in cash while a significant part was also used to make investments in various immovable properties.
This caused a loss of Rs 136.28 crore to SBI and Rs 53.82 crore to PNB. ED attached assets worth Rs 52.77 crore through Provisional Attachment Orders dated August 3, 2016, and January 27, 2022.