Money Laundering Case: Big Action By ED In Chennai

Money Laundering Case: Big action by ED in Chennai, assets worth Rs 234 crore attached for fraud with Indian Bank.

The Enforcement Directorate (ED) attached immovable assets worth Rs 234.75 crore of M/s Saravana Stores (Gold Palace) Chennai in connection with a money laundering case to defraud an Indian Bank.

ED initiated an investigation under PMLA, 2002 on the basis of an FIR of April 25 registered by CBI, EOW Chennai.

The ED registered the case on May 26 under the provisions of the Prevention of Money Laundering Act.

It is alleged that Late Pallakudurai, P Sujatha, and YP Shirvan, partners of M/s Saravana Stores (Gold Palace) with criminal intent to defraud Indian Bank, T Nagar branch, Chennai, conspired with unknown public servants and unidentified others.

Big disclosure in ED’s investigation.

ED investigation has revealed that M/s Saravana Store (Gold Palace) Chennai has applied for sanction of loan by preparing the balance sheet and estimating the sound financial position of the firm.

According to the central agency, there is a huge mismatch between the reported sales and the credit entries of the firm.

The said firm has furnished a cosmetic picture of expected turnover for the ensuing financial years while availing the loan.

In order to defraud Indian Bank, the firm, in connivance with the property valuer, bank officials, and certain private persons, offered to buy the property at a price much higher than the actual fair market value for personal gain.

The investigation conducted by the Enforcement Directorate under PMLA, 2002 has sufficiently established the evil intentions of the accused persons and bank officials from the very beginning.

Misappropriation of money.

Investigation revealed that the accused persons exaggerated the list of items and transferred the property without the knowledge of the bank.

Not only this, he used the OCC limit to repay the term loan, misappropriated the money, and diverted that money for the purpose for which it was not sanctioned.

Apart from this, the accused also committed other irregularities. In this way, the said accused persons and firms cheated the bank and caused damage to it. He has wronged himself.

The investigation of the case continues.

The accused company has earned crime proceeds of Rs 240 crore from criminal activities. Further investigation is going on.