In connection with a Money Laundering case for defrauding Axis Bank, the Directorate of Enforcement (ED) has attached moveable properties of M/s Saravana Stores (Gold Palace) Chennai totalling Rs. 66.93 Crore.
On the basis of the FIR dated 25.02.2022 filed by the Central Criminal Branch-I, Chennai, ED opened an inquiry under the PMLA, 2002. In accordance with the terms of the Prevention of Money Laundering Act, 2002, ED registered the case on September 23, 2022.
The partners of M/s Saravana Stores (Gold Palace), Late Shri Pallakudurai, Smt. P. Sujatha, and Shri Y.P. Shiravan, are accused of approaching Axis Bank with the purpose to defraud Axis Bank, Chennai. A loan was obtained by M/s Saravana Store (Gold Palace) in Chennai using fake and manipulated papers, according to the PMLA Investigation.
Investigations showed that the accused overstated inventory used OCC limits to repay loans from other financial institutions (banks/NBFCs), misappropriated and diverted funds for which they had not been authorised, and engaged in other irregularities, which led to the accused individuals and companies defrauding the Bank. Through the illegal activity, the accused Firm generated proceeds of crime totalling Rs 81.66 Cr, of which Rs 66.93 Cr has been attached as of this Provisional Attachment Order. More research is currently being done.
