ED attaches Rs 13.51 Cr properties of Hyderabad-based Servomax in bank fraud case – The New Indian Express
HYDERABAD: The Enforcement Directorate (ED) has provisionally seized 15 real estate properties worth over Rs 13.51 Crore belonging to Hyderabad-based M/s Servomax India Private Limited (SIPL) in a multi-tier bank fraud case -crore. The attached properties are in the name of parents of directors Poreddy Chandrashekhar Reddy and Avasarala Venkateswara Rao and their benamidars. The attached properties are located at prime locations in and around Hyderabad.
ED had in January arrested Rao for causing a loss of around Rs 402 crore to a consortium of public sector banks by engaging in various fraudulent practices. The ED has launched an investigation against Venkateswara Rao, Chandrasekar Reddy and other defendants based on a case registered by the CBI.
During the investigation, ED discovered that SIPL had obtained loans from a consortium of banks, including letters of credit (LC), bank guarantees (BG) and a working capital loan, and then had them misappropriated and had not used the loans for the stated purpose and had not repaid the loans.
The fund’s lead investigation revealed that the company had received LCs on behalf of its related fictitious entities and without the supply of material, the LCs had been discounted and returned the proceeds of the LC discount and the promoters l had used for personal gain and to invest as share capital and advance loan in their businesses.
Moreover, the money was also withdrawn in cash and through the accounts of its small employees. During the investigation, two Benamidars Atluri Prasad and J. Rajesh of M/s Maruthi Travels admitted to laundering the proceeds of crime at the request of the main accused.
Despite SIPL being liquidated through NCLT, the promoters managed to alienate the proof of concept (POC) and purchase assets on behalf of their family members and benami entities.
Further investigation is underway, ED officials said.
ED seizes properties in illegal ephedrine manufacturing case
In a separate case, the ED has provisionally seized real estate worth Rs 1.61 Crore belonging to S Nagaraju, Gadiparthi Satyanarayana and K Raju Paranthaman in connection with a case related to the illegal manufacture of ephedrine , a psychotropic substance.
The properties are located in Telangana and Tamil Nadu.
ED initiated a money laundering investigation against the accused based on a complaint filed by the DRI under the NDPS Act for the illicit manufacture and trade of ephedrine.
ED found that the defendants generated proceeds of crime to the tune of Rs 5.23 Crore by trading in illegally manufactured ephedrine. The investigation revealed that entire transactions were carried out in cash without receipts, invoices and permits from the relevant authorities.
It has also been found that properties were acquired by the accused by making cash payments which are the proceeds of crime and as a result, 16 land properties located in Telangana and Tamilnadu valued at Rs 1.61 Crore have been provisionally seized under the Prevention of Money Laundering Act. (PMLA). Further investigation is underway, ED officials said.
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