ED attaches Rs 2.43 crores assets in Blossoms Oils & Fats case
Blossoms Oils & Fats cheated IOB and Indian Bank of Rs 266 crores using forged documents
By Newsmeter Network Published on 19 Nov 2024 1:56 PM GMT
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Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has attached immovable properties worth Rs 2.43 crores (book value) belonging to Sarvade Vinod Kumar and Jan Shakti Oil Products represented by M Venkata Nagendra, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the case involving Blossoms Oils & Fats Limited.
The attached immovable assets include residential as well as commercial properties.
The ED initiated an investigation on an FIR registered by the Bank Frauds and Securities branch (BSFB) of the CBI, Bengaluru, under various sections of IPC, 1860 against Blossoms Oils & Fats Limited and others.
āBlossoms Oils & Fats cheated IOB and Indian Bank of Rs 266 crores using forged documentsā
The CBI filed a chargesheet (1918/2019) dated February 19, 2019, in the Court of XXI Addl Chief Metropolitan Magistrate cum Special Sessions Judge for CBI cases, Hyderabad.
The chargesheet stated that Blossoms Oils & Fats, its directors and others, defrauded Indian Overseas Bank and Indian Bank, by procuring loans using forged documents. After receiving the loan, they diverted the same for 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 crores.
ED investigation revealed that Blossoms Oils & Fats Limited, represented by its promoters and directors, TG Suryanarayana and others, fraudulently availed credit facilities from Indian Overseas Bank and Indian Bank.
They did this by submitting fabricated and rosy financials, showing huge cash and cash equivalents in the balance sheets of 2012 and 2013. The firm submitted inflated monthly stock statements and further availed 74 Letters of Credit (LC) from Indian Overseas Bank and 8 LCs from Indian Bank by submitting false, fabricated and fraudulent documents in favour of associate/group companies from which no material was received and without any genuine business transactions.
The funds were utilised to repay to existing loans and also for payment of interest towards the devolved LCs. The commission of schedule offences under PMLA, 2002, resulted in the generation of proceeds of crime which were laundered and used for business as well as personal purposes.
