Hyderabad, Nov.19 (NSS): Directorate of Enforcement (ED), Hyderabad Zonal Office has attached immovable properties worth Rs 243 crore (book value) belonging to Sarvade Vinod Kumar and Messrs Jan Shakti Oil Products Pvt. Ltd represented by M Venkata Nagendra, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in the case of Messrs Blossoms Oils & Fats Limited. Attached immovable assets include residential as well as commercial properties.
ED initiated investigation on the basis of an FIR registered by CBI BS&FC, Bengaluru under various sections of IPC, 1860 against Messrs Blossoms Oils & Fats Limited & others. CBI filed charge-sheet No 1918/2019 dated February 19, 2019 in the Court of XXI Addl. Chief Metropolitan Magistrate-cum-Special Sessions Judge for CBI cases, Hyderabad. Messrs Blossoms Oils & Fats Limited, its Directors & others defrauded Indian Overseas Bank & Indian Bank, by availing loans on the basis of forged documents and upon receipt of loan funds, they diverted the same for other personal use through their associate group companies, and thereby caused corresponding unlawful wrongful losses to Indian Overseas Bank and Indian Bank to the extent of Rs 266.74 crore.
ED investigation revealed that Messrs Blossoms Oils & Fats Limited, represented by its Promoters and Directors, T G Suryanarayana & others, fraudulently availed credit facilities from Indian Overseas Bank & Indian Bank, by submitting fabricated & rosy financials, showing huge cash & cash equivalents in the balance sheets of 2012 & 2013 by submitting inflated monthly stock statements and further availed 74 Letters of Credit (LC) from Indian Overseas Bank & 8 LCs from Indian Bank by submitting false, fabricated & fraudulent documents in favour of associate/group companies from which no material was received and without any genuine business transactions and utilized/diverted the loan proceeds and devolved LC proceeds for round-tripping of funds through various companies in order to repay to existing loans availed and also for payment of interest towards the devolved LCs. Commission of schedule offences under PMIA, 2002 resulted in the generation of Proceeds of Crime which were laundered and used for business as well as personal purposes.
