The Enforcement Directorate (ED) on Thursday said it has provisionally attached immovable properties worth Rs 43.25 crore belonging to Sheetal Refineries Limited and its promoter, Jitender Kumar Agarwal under Prevention of Money Laundering Act (PMLA), for defrauding State Bank of Hyderabad and Punjab National Bank.
A senior ED official said the agency has initiated money laundering investigation on the basis of the FIR registered by the CBI BS&FB, Bengaluru for causing a total loss of Rs 87 crore.
An ED investigation revealed that the accused promoters availed various credit facilities from SBH and PNB Hyderabad, by submitting fabricated financial statements and invoices.
The ED official said that the accused 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.
“In total, Sheetal Refineries owe Rs 146 crore to the banks. The diverted loan proceeds which are nothing but proceeds of crime were utilised for purchase of properties and to foreclose older loans and were not used for the stated purposes,” said the ED official.
In this case, the ED had earlier attached 6 immovable properties worth Rs 8.30 crore and five movable assets worth Rs 1.23 crore.
“Now, the ED has attached 15 more landed assets. The purchase value of these assets are Rs 43.25 crore. With the current attachment of 15 more landed properties in Telangana, the total attachment in this case has gone to Rs 52.78 crore,” said the ED official.
The official said that further investigation into the matter is underway.