Hyderabad ED attaches Rs 26.86 crore assets of Sowbhagya Ispat
The probe revealed that SIIPL had availed term loans and working capital facilities from the then Andhra Bank for establishing and expanding a steel manufacturing unit
By Newsmeter Network
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Hyderabad: Sleuths of the Enforcement Directorate, Hyderabad, have attached immovable properties valued at Rs 26.86 crore of Sowbhagya Ispat India Pvt Ltd (SIIPL). The attached properties consist of residential flats, residential house and open plots of land.
The ED initiated an investigation based on the FIR registered by CBI, BS&FB, Bangalore, against its directors and others for defrauding Andhra Bank (now Union Bank of India) and causing wrongful loss to the bank.
What is the case about?
The probe revealed that SIIPL had availed term loans and working capital facilities from the then Andhra Bank for establishing and expanding a steel manufacturing unit.
However, the accused persons fraudulently obtained enhanced credit facilities by submitting fabricated stock statements, inflated financials, forged documents and false certificates.
Further investigation revealed that the loan funds were diverted and siphoned off instead of being utilised for the sanctioned purposes. Funds were routed through related entities and accommodation entry providers, creating fictitious turnover and circular transactions to inflate the financial position of the company.
False and inflated stock statements
The ED investigation further revealed that the accused persons submitted false and inflated stock statements, manipulated receivables and engaged in fictitious transactions to artificially maintain drawing power and avail higher credit limits from the bank.
By adopting such fraudulent means, the accused persons dishonestly obtained and utilised bank loans, thereby causing wrongful loss to the bank and generating Proceeds of Crime (POC) amounting to Rs 46.52 Crore.
The bank has subsequently recovered Rs. 15.52 crore. Out of the remaining POC of Rs 31 crore to be recovered, properties valued at Rs 26.86 crore could be identified during PMLA investigation and the same have been attached under the provisions of PMLA.
