Hyderabad: Enforcement Branch ties up assets of Rs 37 crore in bank loan fraud case | Hyderabad News
HYDERABAD: The Enforcement Management has temporarily attached land and buildings worth Rs 37 crore from Sri Krishna Stockists & Traders Private Limited and its directors in a bank loan fraud. The ED resorted to the seizure of assets under the Prevention of Money Money Laundering Act.
The ED identified 57 landholdings, mostly located in the West Godavari district of AP, which were acquired at a purchase price of Rs 37 crore, and attached to the same. It opened a money laundering investigation based on three FIRs filed by the CBI after Industrial Finance Corporation of Indian Limited, Industrial Development Bank of India and Canara Bank filed complaints.
The banks alleged that Sri Krishna Stockists & Traders (SKSPL) and Sri Krishna Agriprocess India Private Ltd (SKAPIL), through their directors, benefited from large loans by providing false and fabricated balance sheets of the company, reports falsified and grossly inflated appraisals of mortgaged assets and fabricated work estimates. The loan funds were misappropriated and the account became an NPA and caused the banks a net loss of Rs 528 crore (including interest).
The ED investigation found that SKSPL and SKAPIL, represented by its managing director Thota Kanna Rao, secured credit facilities of Rs 313 crore from IFCI, IDBI and Canara Bank in 2014 -2015. The credit facilities were used for the construction of storage facilities. All credit facilities were secured by a mortgage on real estate, shares that were heavily inflated in collusion with employees of APITCO, MITCON and VC Rammohan, then IFCI’s CEO, the ED alleged. Loans were withdrawn and laundered by defendants to purchase plots of land.