In a bank fraud case involving Amanath Co-operative Bank Ltd., Bengaluru, the Directorate of Enforcement (ED) has temporarily attached assets totalling Rs. 243.93 crores that belong to Mohamed Asadulla, A. Shafiulla, and their families under the Prevention of Money Laundering Act (PMLA), 2002.
On the basis of an FIR filed by the Commercial State Police Station in Bengaluru and a Chargesheet filed by the CID in Bengaluru on May 5, 2006, under various IPC sections before the Hon. Court of the First Additional Chief Metropolitan Magistrate (ACMM), Bengaluru against Mohamed Asadulla (ExGeneral Manager of Amanath Co-operative Bank, Bengaluru), A. Shafiulla (ExBranch Manager of Amanath Co-operative Bank, NR Road, Bengaluru), and K. Hidayathulla (then accountant of Amanath Co-operative Bank Ltd) in connection to the creation of false overdraft accounts in the names of themselves, their relatives, and their businesses, which resulted in the embezzlement of cash from the mentioned bank totalling Rs. 68.43 Crore.
The ED investigation found that the aforementioned individuals constructed 50 false Overdraft accounts in the names of themselves, their relatives, and their entities between the years of 1997 and 2002 in order to steal money from the bank. In addition, the accused created an additional 8 real estate accounts and 165 housing loan accounts to reduce the balance of the 50 bogus accounts’ outstanding balances. By doing this, the accused were able to close 40 of the 50 fictitious accounts.
According to information provided by the aforementioned bank, as of right now, the aforementioned 8 real estate accounts, 165 housing loan accounts, and previously opened 10 overdraft accounts (out of 50 fictitious accounts) are still open, and the total loan proceeds of these accounts, at the time that the aforementioned accounts were declared NPA, totalled Rs. 79.30 Crore.
The aforementioned folks used the fraudulently obtained loan profits from the aforementioned accounts to buy various real estate both in their own names and the names of their relatives. The earnings of crime obtained by creating the aforementioned bogus accounts were used to purchase land and other assets. In accordance with the PMLA’s provisions, properties totalling 8 Acres that are owned by Mohamed Asadullah, A. Shafiulla, and their family and are located in NS Palya, BegurHobli, and Bannerghatta Road in Bengaluru have been provisionally attached. The probe is being expanded upon.
