Hyderabad: The Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs. 43.25 crore belonging to Sheetal Refineries Limited (SRL) and its promoter, Jitender Kumar Agarwal, under Prevention of Money Laundering Act (PMLA)-2002 for defrauding State Bank of Hyderabad (SBH) and Punjab National Bank (PNB) in a bank fraud case, according to a press release.
The ED initiated money laundering investigation on the basis of FIR registered by Bengaluru unit of CBI for causing a total loss of Rs. 87 crore. The ED’s investigation revealed that the accused promoters availed various credit facilities from SBH and PNB Hyderabad, by submitting fabricated financial statements, invoices, etc.
They got Letters of Credit (LCs) issued from lending banks in the name of related shell entities as if material is being purchased. LCs were discounted by the related entities and the money so received was routed back to the promoters of Sheetal Refinery. The company defaulted in payment of LCs on due date and LCs devolvement caused loss to the banks.
Hyderabad Newsclick here for more Hyderabad NewsIn total Sheetal Refineries owe Rs 146 crore to the banks. The diverted loan proceeds which are nothing but proceeds of crime were utilized for purchase of properties and to foreclose older loans and were not used for the stated purposes.
In this case, the ED had earlier attached half a dozen immovable properties of registered value of Rs 8.30 crore and five movable assets worth Rs. 1.23 crore. It has now attached 15 more landed assets. The purchase value of these assets is Rs 43.25 crore. With the present attachment of 15 more landed properties in Telangana the total attachment in this case is Rs. 52.78 crore.
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