Hyderabad: Enforcement Directorate (ED) has provisionally attached 14 immovable properties worth Rs. 51.40 Crore belonging to Ishoo Narang, Director of Kyori Oremin Limited (KOL), and its promoters in a bank fraud case. The immovable properties are located at Vizianagaram of Andhra Pradesh and Shankarpally of Telangana.
Based in Hyderabad, Kyori Oremin Limited represented by Ishoo Narang, Chandulal Patel, and Rudra Raju Srinivas Shah are engaged in coal import. The directors are accused of swindling loan money. The company had availed loans from various banks under multiple banking arrangements, including the Bank of Maharashtra, between 2013 and 2016.
Enforcement Directorate took up an investigation under prevention of money laundering based on an FIR registered by CBI's Banking Security and Fraud Cell-Bengaluru. It was upon a receipt of a complaint from the Central Bank of India against Kyori Oremin for defrauding the bank to the tune of Rs. 62.75 Crore.
Later on, two more FIRs were registered against them by CBI, ACB, Hyderabad, and Telangana Police after receiving complaints from the Bank of Maharashtra and ICICI bank for defrauding them of Rs. 43 Crore and Rs. 29.58 Crore respectively.
What investigation found?
KOL and its directors have also defrauded the Bank of Baroda (BOB) and State Bank of India (SBI). They swindled Rs 59.31 Crore from BOB and Rs. 41.84 Crore from SBI. They have defrauded five banks to the tune of Rs. 241.93 Crore.
KOL subsequently entered into a One-Time Settlement (OTS) with all the five banks and paid a meager final settlement amount of Rs 61.94 Crore against the total Non Performing assets of Rs 241.93 Crore. Thus, despite this OTS, the Banks suffered a massive loss of Rs 180 crore approximately.
"ED investigation traced the diversion of loan amounts by KOL and its directors to the tune of Rs 100 Crore. These loans were diverted to fictitious and bogus entities and projected as payments towards business purchases and business expenses," officials said.
Officials noted that the main promoter Ishoo Narang was investigated by Income Tax Department also for the generation of bogus Long term capital gain. "Further, the letter of credits availed by them also devolved on account of such malpractices, forcing the Banks to meet the LC commitments on behalf of KOL and causing loss to the Banks. ED investigation found that the source of money for the OTS was also tainted and not explained by the promoters of M/s KOL," they added.