The Enforcement Directorate (ED) mentioned Wednesday it has provisionally hooked up property price Rs 40.14 crore of Bengaluru-based Kavveri Telecom Infrastructure Restricted underneath the Prevention of Cash Laundering Act (PMLA), 2002.
The ED initiated a money-laundering investigation primarily based on a first info report (FIR) registered by the Central Investigation Bureau in July 2017. It was filed primarily based on a criticism by the then deputy normal supervisor of Dena Financial institution alleging dishonest by the corporate and its administrators regarding loans taken by them.
Based on the ED, through the investigation, it was observed that the corporate and its administrators had taken a mortgage from the erstwhile Dena Financial institution to the tune of Rs 45 crore within the identify of buy of kit, nevertheless, the identical was diverted via its sister considerations and conduit entities managed by them. For availing the mortgage, the administrators of the corporate submitted faux and fabricated tax invoices and lorry receipts with the financial institution, it mentioned.
The ED mentioned the mortgage quantity was diverted utilizing varied accounts of group entities which embody conduit entities and the non-public saving accounts of promoters/administrators. Additional, the diverted mortgage quantity was rotated among the many financial institution accounts of group entities and administrators and an online of transactions was created to venture this cash as untainted. Subsequently, part of this cash, to the tune of Rs 27.14 crore, was siphoned off overseas and parked there, the ED added.
Additionally, the proceeds of crime have been used to accumulate movable and immovable properties within the identify of administrators and their relations. When the account grew to become a non-performing asset (NPA), the excellent mortgage was Rs 40.18 crore, the ED mentioned.
Additional investigation is in progress, the ED added.