HYDERABAD: The Enforcement Directorate, Hyderabad zone, has provisionally attached movable and immovable properties worth Rs 55.73 crore under the provisions of PMLA in a bank fraud case involving M/s VMC Systems Limited.
The agency initiated investigation on the basis of FIR registered by the CBI, Bengaluru, under various Sections of Indian Penal Code against VMC Systems, its directors and others for defrauding Punjab National Bank and others to the tune of Rs 539.67 crore. The agency found that in 2009, VMC Systems approached PNB and SBI for part-financing its working capital requirements. Between 2009–2012, VMC Systems availed credit facilities from a consortium of banks consisting of Corporation Bank, Andhra Bank, SBI, PNB and Karur Vysya Bank with SBI as the lead bank, to the tune of Rs 1,673.52 crore.
The VMC System’s PNB account was deemed a non-performing asset on December 31, 2013, and its accounts in other banks followed suit. The total loss to all the banks as on March 31, 2018, was pegged at Rs 1,745.45 crore. ED investigation revealed a trail of falsification of accounts and diversion of credit facilities to multiple entities ultimately linked to VMC Systems leading to the generation of proceeds of crime.
Directors of these entities, during investigation, confirmed the fraudulent nature of these transactions. Additionally, funds were channelled through entities beneficially owned and controlled by individuals associated with VMC Systems Ltd and its promoters.
Following investigations, the assets attached by the ED include the residential house of V Satish Kumar, the promoter, situated at Jubilee Hills, Hyderabad, agricultural land situated in Anajpur village, Rangareddy acquired in the name of Rajesh Kotha, benami and associate of V Satish Kumar; a tea estate spread on 580.77 acres in Cacher district, Assam, valued at Rs 11.73 crore in the name of Emmel Infra Properties (India) Pvt. Ltd. and receivables of VMC Systems Ltd. from BSNL to the tune of Rs 37.03 crore.