ED seizes assets of Spice Trading Co in J&K Bank loan fraud case
The Law Enforcement (ED) Directorate has seized assets worth over ₹145 crore from a Bengaluru-based spice company in a money laundering investigation linked to loan fraud allegedly at 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, and others have been temporarily seized under the Prevention Act. money laundering (PMLA).
The total value of attached properties is ₹145.26 crore, he said. The ED case stems from an FIR filed by the JK Police Anti-Corruption Bureau against the company and its promoter manager Syed Anish Rawther, then manager 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 defaulted on a loan and was declared NPA (non-performing asset) in September 2017. A net amount of ₹285.81 crore was outstanding with the company in addition to interest unenforced of ₹66.91 crore against the mortgaged secured property. of ₹171 crore,” the ED said in a statement.
During the same period, he said, the company “also borrowed ₹16.5 crore from HDFC Bank and ₹25 crore from RBL Bank and mortgaged the same property, which was already mortgaged to J&K Bank “.
“The then branch manager (of J&K Bank) in collusion with the promoter/director of the company caused a loss to the state treasury in the amount of ₹352.72 crore,” the agency claimed .
The company got 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 has also diverted funds to sister companies/groups by adjusting their outstanding export invoices by releasing new packaging credit, inland letters of credit (ILC) to relationships with sister companies through hosting of invoices under the cover of ILC.” “It was found that SA Rawther Spices took advantage of J&K Bank packaging credit loans and used them to service installments to the Central Trade Agency term loan account, which is a sister company to old society,” he said.