New Delhi, Sep 10: Enforcement Directorate (ED) has attached assets worth Rs 92 crore of SPS Steel Rolling Mills Ltd and others under Prevention of Money Laundering Act (PMLA) in a bank fraud case, an official statement said here on Tuesday.
The attached assets consist of shares of an entity owning Five Star hotel, three luxurious apartments, office buildings and 0.33 acres of land.
The central financial probe agency took up for investigation on the basis of CBI’s FIR against SPS Steel Rolling Mills Ltd, Bipin Kumar Vohra, the beneficial owner of the company and others for defrauding a consortium of eight Banks led by Allahabad Bank, Kolkata for an amount of around Rs 550 crore. Other banks were Central Bank of India, Indian Overseas Bank, UCO Bank, State Bank of Hyderabad, UBI, Corporation Bank and Oriental Bank of Commerce. The CBI alleged that a part of the funds was used to repay a term loan taken from Yes Bank.
“The investigation under PMLA revealed that the defrauded amount was fraudulently siphoned through formation of shell companies. The accused also diverted the loan amount in their various other existing business activities that of running Five Star hotels, security agencies and also for repayment of earlier debts”, the probe agency said.
After investigation movable assets consisting shares and immovable assets consisting of three luxurious apartments, office buildings and land were found to be ‘Proceeds of Crime’ and accordingly provisional attachment order was issued, the ED said further in statement. (UNI)