ED seizes assets of spice trading company in J&K Bank loan fraud case




Press Trust of India

New Delhi: Enforcement Branch (ED) seized assets worth over Rs 145 crore of a Bengaluru-based spice company in money laundering investigation linked to suspected fraud on loans to J&K Bank.

The agency said in a statement on Wednesday that a factory building, shops, apartments and land of the company, SA Rawther Spices Pvt Ltd, and others were provisionally attached under the prevention of money laundering (PMLA).

The total value of the attached properties is Rs 145.26 crore, he said.

The ED case arises from an FIR filed by the J&K Police Anti-Corruption Bureau against the company and its promoter director Syed Anish Rawther, then director of the J&K Bank branch located at BU Infantry Road in Bengaluru and other officials from the same bank. , in August 2019.

“In the FIR, it was alleged that SA Rawther Spices Pvt Ltd was in default of payment and had been declared NPA (non-performing asset) in September 2017. A net amount of Rs 285.81 crore was unpaid with the company in plus unapplied interest of Rs 66.91 crore against mortgaged collateral property of Rs 171 crore, ”the ED said in a statement.

During the same period, he said, the company “also borrowed Rs 16.5 crore from HDFC Bank and Rs 25 crore from RBL Bank and mortgaged the same property, which was already mortgaged from J&K Bank Ltd.

“The then branch manager (of J&K Bank) in collusion with the promoter / manager of the company caused a loss to the treasury amounting to Rs 352.72 crore,” the agency said. .

The company obtained several loans and used them to export goods mainly to related parties and the export earnings were never realized in India, she claimed.

The company also diverted funds to sister / group companies by adjusting their overdue export invoices by releasing new packaging credits, domestic letters of credit (ILC) to transactions with sister companies through the through hosting invoices under the cover of ILC. “

“It was found that SA Rawther Spices Pvt Ltd had used packaging credit loans from J&K Bank and used them for the service of payments into the term loan account of Central Trade Agency Pvt Ltd., which is a sister company of the old company, ”he said. .



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