ED Attached assets worth Rs. 40 Crore of Kavveri Telecom Infra. Directorate of Enforcement (ED) has provisionally attached assets worth Rs. 40 Crore belonging to directors and promoters of Bangalore-based company Kavveri Telecom Infrastructure Limited under PMLA, 2002 in a bank fraud case.
Directorate of Enforcement (ED) has provisionally attached immovable
properties in the form of residential apartment/plots and agriculture land and movable
properties in the form of bank balances and fixed deposits worth Rs. 40.14 Crore
belonging to directors and promoters of Bangalore based company Kavveri Telecom
Infrastructure Limited under the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated money laundering investigation on the basis of FIR dated
27.07.2017 registered by Anti-Corruption Bureau of CBI, Bangalore under various
sections of Indian Panel Code, 1860 and Section 13(2) r/w Section 13(1)(d) of
Prevention of Corruption Act 1988. The said FIR was registered on the basis of
complaint filed by the then DGM, Dena Bank alleging cheating done with the bank by
the company and its directors in respect of loan taken by them.
During investigation, it was noticed that the company and its directors have
taken loan from the erstwhile Dena Bank to the tune of Rs.45 Crore in the name of
purchase of equipment, however, the same was diverted through its sister concerns
and conduit entities controlled by them. For availing the loan, the directors of the
company submitted fake and fabricated tax invoices and lorry receipts etc. with the
bank.
The said loan amount was diverted using various accounts of group entities
which include conduit entities and the personal saving accounts of promoters/directors.
Further, the diverted loan amount was rotated among the bank accounts of group
entities and directors and a web of transactions was created to project this money as
untainted. Subsequently, a part of this money to the tune of Rs. 27.14 Crore was
siphoned off to abroad and parked there. Also, the proceeds of crime were used to
acquire movable and immovable properties in the name of directors and their family
members. Thus, they have cheated the bank and caused loss to the bank. When the
account became NPA, the outstanding loan was of Rs. 40.18 Crore.
