The Enforcement Directorate Saturday mentioned it has restituted belongings value greater than Rs 30 crore to a financial institution as a part of a cash laundering investigation towards a Telangana-based refinery firm accused of committing a mortgage fraud of about Rs 190 crore.
The case pertains to the corporate named Sheetal Refineries Restricted and another linked entities.
“Directorate of Enforcement, Hyderabad zonal workplace has efficiently achieved the method of restitution of properties value Rs 30.71 crore to the State Financial institution of India in reference to a cash laundering case towards Sheetal Refineries Restricted (SRL) and others,” the ED mentioned in a press release.
The corporate availed credit score amenities from a consortium of banks, together with SBI and Punjab Nationwide Financial institution, which later become non-performing asset (NPA), it mentioned.
The agency availed 21 “fraudulent” Letters of Credit score from these banks, based mostly on pretend and cast invoices, with none precise provide of fabric or legit enterprise transactions, it alleged.
The promoters of SRL “diverted” the funds from the devolved Letters of Credit score into SRL’s financial institution accounts, in addition to “in their very own and members of the family’ accounts”.
The “proceeds of crime” had been partly withdrawn in money whereas a major half was additionally used to make investments in numerous immovable properties within the names of the promoters and their members of the family, as per the ED.
This brought on “wrongful” lack of Rs 136.28 crore to the SBI and Rs 53.82 crore to the PNB, it mentioned.
The federal probe company, as a part of separate orders issued in 2016 and 2022, had hooked up belongings value Rs 52.77 crore on this case.
The ED mentioned on its initiative, the SBI filed a restitution utility below Part 8(8) of the Prevention of Cash Laundering Act (PMLA) earlier than a particular court docket in Hyderabad “for launch of immoveable properties seized by the ED”.
The court docket, as per the federal probe company, issued an order on February 7 directing for the discharge of immoveable properties (value Rs 30.71 crore) of Sheetal Refineries and its administrators to the SBI.
“This marks one other step in ED’s efforts to revive properties to their rightful claimants and to make sure that proceeds of crime are returned to these affected,” the ED mentioned.
