The Enforcement Branch seized immovable property worth Rs 43.25 crore belonging to Sheetal Refineries Limited and its developer in a money laundering case.
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The Law Enforcement Directorate seized immovable property worth Rs 43.25 crore belonging to Sheetal Refineries Limited and its developer Jitender Kumar Agarwal under the Prevention of Money Laundering Act for defrauded the State Bank of Hyderabad and the Punjab National Bank in a bank fraud case, officials said.
The ED had opened the money laundering investigation based on an FIR registered by the Central Bureau of Investigation for causing a total loss of Rs 87 crore.
The ED alleged that the accused promoters took advantage of various credit facilities from the State Bank of Hyderabad and the Punjab National Bank by submitting fabricated financial statements and invoices.
“They obtained letters of credit (LC) issued by lending banks in the name of related fictitious entities, as if equipment was purchased. The LCs were discounted by the related entities and the money so received was redirected to the developers of Sheetal Refinery. The company defaulted on payment of the LCs on the due date and the assignment of the LCs caused losses to the banks,” the ED said in a statement.
Sheetal Refineries is expected to bank Rs 146 crore. The proceeds of crime were allegedly used for the purchase of properties and to seize older loans and were not used for the stated purpose.
In this case, the ED had previously attached six immovable properties with a registered value of Rs 8.30 crore and five movable properties worth Rs 23 crore.
The total attachment in this case is Rs 52.78 crore.
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