Bank Loan Fraud: Law Enforcement Branch Arrests Managing Director of Hyderabad Company
This is the second arrest in the case after her sister V Hima Bindu, the ‘main defendant’ and managing director of a city-based telecommunications equipment manufacturing company, VMCSL, was arrested by the ED at the beginning of the month.
“Although V Satish Kumar claimed that he had no connection with VMCSL non-performing asset (NPA), more than 40 hard drives of this company were recovered from his home during the search carried out on July 20 .”
“Upon forensic examination of the digital devices, it was discovered that he (Satish Kumar) had engaged in benami transactions and was involved in efforts to transfer fraudulent amounts to offshore entities” , alleged the ED in a statement posted here.
He claimed that he did not cooperate during the investigation and that he did not provide the documents of his own business entities under one pretext or another.
The ED money laundering case against VMCSL and its promoters is based on a CBI FIR previously filed against them.
“VMCSL had borrowed from a consortium of banks and the current outstanding dues to all banks stand at Rs 3,316 crore.”
“The forensic audit revealed that VMCSL circulated loans to various related entities to inflate its books of accounts,” the ED alleged earlier.
He said the audit also revealed that his related entity, PISL, had received a 3% commission from VMCSL for all BSNL receipts “without any specific role” of PISL in BSNL’s tenders.
“The forensic audit revealed that VMCSL had opened various letters of credit worth Rs 692 crore in the name of fake or fictitious entities which were later transferred,” he alleged.
Bindu, the ED had claimed, through his company VMCSL and with the “active assistance” of his brother V Satish Kumar, in order to dodge the banks, created false and exaggerated operational income by generating false sales invoices and of purchase through companies controlled by their directors and members of their family.