Bank loan fraud: ED seizes assets of Rs 40-cr from Bengaluru company

PTI, August 4, 2022, 12:07 PM IST

Assets worth more than Rs 40 crore have been seized in a money laundering investigation linked to suspected bank loan fraud against a Bengaluru-based company, the Directorate of Law Enforcement has said.

An interim order has been issued under the Prevention of Money Laundering Act (PMLA) to seize residential apartments, plots, farmland and bank deposits of Kavveri Telecom Infrastructure Limited, the central agency said. in a statement released Thursday.

The total value of the attached properties is Rs 40.14 crore, he said.

The money laundering case stems from a July 2015 FIR filed against the company and its promoters by the CBI’s Anti-Corruption Branch in Bengaluru.

The CBI FIR was registered on the basis of a complaint filed by the then DGM, Dena Bank, alleging fraud committed with the bank by the company and its directors regarding a loan taken out by them, the ED said. .

“The company and its directors took out loans from the former Dena Bank to the tune of Rs 45 crore in the name of purchasing equipment. However, it was hijacked by its sister concerns and the intermediary entities controlled by them “For using the loan, the directors of the company submitted false tax invoices and truck receipts etc. to the bank,” the agency alleged.

The loan proceeds were “diverted” using various group entity accounts which include flow-through entities and the promoters/directors’ personal savings accounts, he said.

The embezzled loan amount was transferred between the entities’ and group administrators’ bank accounts and a transaction network was created to project this money as uncontaminated, the agency said.

“Some of this money to the tune of Rs 27.14 crore was siphoned off overseas and parked there. In addition, the proceeds of crime were used to acquire movable and immovable property on behalf of the directors and their family members,” he said.

The accused deceived the bank and caused losses to the bank and when the account became NPA (non-performing asset), the outstanding loan amount was Rs 40.18 crore, he said.

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