The Metropolitan Sessions Court in Hyderabad found all of the defendants guilty of the offence of money laundering as defined in section 3 of the Prevention of Money Laundering Act (PMLA) 2002 in a bank fraud case that was probed by the Directorate of Enforcement (ED). The MSJ Court has convicted three bank executives, S Narasimhan, A Sesibhushana Rao, and S Arogyam, as well as Smt. T Jayasree and M Chinna (both employed by M/s Chakkilam Trading House Ltd), were to seven years of solitary confinement and a punishment of Rs. 50,000 apiece. Moreover, the court ordered M/s Chakkilam Trading House Ltd to pay a 1 lakh rupee fine.
On the basis of a case filed by the Central Bureau of Investigation, Anti-Corruption Branch, Hyderabad, under different articles of the Indian Criminal Code, 1860, and the Prevention of Corruption Act, 1988, the ED undertook the PMLA investigation. According to the findings of the ED investigation, M/s Chakkilam Trade House Limited (then represented by its director, the late Sh. Chakkilam Raghuram), fraudulently obtained a loan from SBI using fabricated financial statements, board resolutions, documents demonstrating a higher turnover, and fictitious memorandums of understanding (MOUs) with various parties purporting to show business dealings. SBI approved a total sum of Rs. 2,08,50,000, which was stolen and laundered. Investigations also showed that the firm and its promoters had already sold the properties that had been mortgaged with the banks for the loan.
ED filed a Prosecution Complaint in December 2013 against M/s Chakkilam Trading House Ltd and 06 accused individuals, including three bank executives, who were involved in the money laundering offence after concluding its investigation.
