In the Syndicate Bank fraud case, the Directorate of Enforcement (ED) has filed a Prosecution Complaint under the Prevention of Money Laundering Act (PMLA), 2002 against Vijay Akkash and 18 others, and the Hon’ble Special Court (PMLA), Bengaluru, has taken cognizance of the complaint on April 1, 2023.
On the basis of an FIR filed by Bengaluru Police under various IPC sections against some employees of the Syndicate Bank, Uttarahalli Branch, Bengaluru, and other unnamed accused, a money laundering investigation was started. Later, the investigation was taken over by the CCB, Bengaluru, and a chargesheet was submitted to the Hon’ble 4th ACMM, Court, Bengaluru City.
Investigation revealed that one Mohamed Musthafa had opened a current account and a fixed deposit account in the Syndicate Bank under the guise of an account officer for the Karnataka State Agricultural Marketing Board (KSAMB), using fabricated or false documents such as a board resolution, an ID card, letterhead, etc. He was able to successfully move the remaining Rs. 50 crore to the Fixed Deposit account and transferred Rs. 50 crore to the fictitious Current Account.
Mohamed Musthafa transferred funds totalling Rs. 47,16,62,500 from the said current account of KSAMB in 97 transactions of Rs. 48,62,500 each to 69 different bank account numbers belonging to various persons/entities; after depositing the said Rs. 50 Crore in the fake current account of KSAMB, Mohamed Musthafa transferred Rs. 48,62,500 in each transaction to various account numbers belonging to various entities and persons with the assistance of bank staff and others.
As a result, the ED issued a Provisional Attachment Order in this matter attaching movable and immovable properties worth Rs. 4.98 crore held in the names of the accused. The probe is being expanded upon.
