HYDERABAD: The Enforcement Directorate arrested Vuppalapati Satish Kumar, MD of Prithvi Information Solutions Limited (PISL), on August 12 under the Prevention of Money Laundering Act (PMLA) 2002. According to a press release issued by the ED said on Thursday, Satish Kumar was produced before the PMLA Special Court which granted 10 days custody to the ED.
Satish Kumar was arrested for money laundering and causing a loss of around Rs 3,316 crore to a consortium of public sector banks with the connivance of Hima Bindu B, MD of VMC Systems Limited. The ED initiated money laundering investigation on the basis of an FIR filed by CBI against VMC Systems Limited. The company had taken loans from a consortium of banks and the present dues outstanding to all the banks are about Rs 3,316 crore.
Forensic audit has revealed that VMCSL circulated loans to various related entities to inflate its books of accounts. Forensic audit further revealed that the company had opened various Letters of Credit (LCs) worth Rs 692 crore in the name of fake and dummy entities.
Satish Kumar through his company PISL and Ennar Energy Limited and with the active assistance of his sister Hima Bindu, in order to dodge the banks, created false and exaggerated operational revenues by generating fake sales and purchase invoices through the companies controlled by their family members.
Satish Kumar and Hima Bindu siphoned off a part of the proceeds of the crime by remitting it to the overseas entities controlled by their family members. Although Satish Kumar claimed that he had no link with the NPA of VMCSL more than 40 Hard disks of the company were recovered from his residence during the search carried out on July 20, 2021.
Benami transactions
Forensic examination of digital devices revealed Satish Kumar’s involvement in benami transactions and his efforts to transfer funds to off-shore entities.