ED attaches Zylog properties in bank fraud case
Tamil Nadu

ED attaches Zylog properties in bank fraud case

Agency News

Chennai, Mar 11 : Officials of the Enforcement Directorate (ED)
on Monday attached the immovable and movable properties to the
tune of Rs 31 crores of M/s Zylog Systems Limited and others under
the Prevention of Money Laundering Act, 2002 (PMLA) in a bank
fraud case.
An ED release here said it initiated investigation under the PMLA
provisions on the basis of FIR of CBI and FC, Bangalore against
Zylog Systems, Mr Sudarshan Venkatraman, the then Chairman
and Chief Executive Officer, Ramanujam Sesharathnam, the then
Managing Director and Chief Operating Officer and others. The CBI FIR was based on the compliant received from Dena Bank, T Nagar branch, Chennai, complaining that these persons floated fictitious shell companies namely M/s. Woodbridge Technologies  Private Limited, M/s. Effica Systems Private Limited and Aditicon
Services (P) Limited etc. and that they made the employees of
Zylog Systems as directors of these companies, created fictitious
invoices towards purchase of software/hardware in the name of
these companies and availed loan of Rs.100 crores from the bank
and the same was defaulted in repayment.

Investigations under the provisions of PMLA revealed that the said
firms had also defaulted bank loans availed from Andhra Bank and
Union Bank of India, Chennai collectively to the tune of Rs.110 crore.
Investigations under PMLA so far have resulted into identification of
one building, five flats and Fixed Deposit worth Rs one crores involved
in money laundering.

The said immovable and movable properties valued at Rs.31 crores
have been attached under PMLA. UNI