CHENNAI: The ED’s Chennai zonal office restituted a property worth `25.38 crore, attached during a money laundering investigation, to Indian Bank, a release said. ED had initiated a probe against Nafisa Overseas and others based on a bank fraud case filed by CBI.
The case was based on a complaint by the bank that using bogus and fabricated documents like VAT returns and stock statement, credit facilities were processed and disbursed to Nafisa Overseas and Safa Leathers.
ED probe revealed that accused availed loan from Indian Bank and created a hypothecation over fabricated stocks and properties and also created an equitable mortgage of the immovable properties in favour of the bank as a security for loan facilities.
Exaggerated turnovers and stock statements were shown for availing further credit. Consequently, the accused defaulted in servicing and repayment of accounts because of which the loans turned into non-performing assets causing a loss of Rs 23.46 crore. Based on this, ED attached properties worth Rs 20.65 crore on August 28, 2020. Prosecution complaint was filed before a Sessions Court and cognisance taken.