BENGALURU: The Directorate of Enforcement (ED) has attached assets worth Rs 146.67 crore of Future Metals Pvt Ltd (FMPL) and Future Exim India Pvt Ltd (FEIPL) under provisions of the Prevention of Money Laundering Act, 2002 in a case connected with fraud committed on banks in the guise of merchant trade. According to the ED, the attached “proceeds of crime are immovable properties located in Maharashtra, Punjab, New Delhi, Gujarat, Bengaluru and Ballari.”
The ED initiated the investigation on the basis of FIRs registered by the Bengaluru police under Sections 120B and 420 of Indian Penal Code (IPC) for criminal conspiracy and cheating on July 18, 2009 and another FIR by the Anti-Corruption Bureau (ACB) of the Central Bureau of Investigation (CBI), New Delhi, on October 9, 2009 against the accused persons under Sections 120B r/w 420 and 471 (using a forged document as genuine) of the IPC in a money laundering case linked to alleged fraud at the State Trading Corporation of India Ltd (STCL), which is a public sector enterprise.
The ED noted that FMPL and FEIPL first approached STCL for entering into merchandise trade and requested it to facilitate the trade. “FMPL and FEIPL entered into tripartite agreements with STCL Ltd along with overseas buyers and sellers for export and import of copper and nickel. The FMPL and FEIPL had signed the agreements guaranteeing the payment to be made by the overseas buyers,” the agency said.
The ED claimed that FMPL and FEIPL “did not honour” the tripartite agreements and Naveen Sriram, chairman of FMPL and FEIPL, and Sudheer Sriram, managing director of FMPL and FEIPL, executed a deed of personal and corporate guarantee in favour of STCL against the latter agreeing to provide finance for the merchandise trade transactions.This corporate guarantee could be invoked by STCL in the event of any default in repayment of amount, the ED said.
“The STCL had established irrevocable LCs (letters of credit) for the usance (usage) period of 90 days towards purchase of goods with a condition that the LCs would not be allowed to devolve under any circumstances as per the undertaking given by FMPL/FEIPL,” the ED stated.