ED restores Rs 25 crore to bank in money laundering case

New Delhi (The Uttam Hindu): The Enforcement Directorate (ED) restituted property valued at Rs 25.38 crore to the victim and rightful claimant in an anti-money laundering case filed against Nafisa Overseas and others on the complaint of the Indian Bank. The restitution of property was done by the Enforcement Directorate, Chennai Zonal office, in the case in which fake documents were used to avail of a bank credit facility before using the money for unauthorised purposes.

The ED initiated an investigation on the basis of an FIR registered by the Anti-Corruption Branch (CBI), Chennai. The FIR was registered on the basis of a complaint by the Indian Bank that alleged the use of bogus and fabricated documents like Value Added Tax returns (VAT) and stock statements, for starting credit facilities and disbursing funds to the Nafisa Overseas and Safa Leathers.

Investigation by the ED revealed that the accused availed the loan facilities from the Indian Bank and created a hypothecation over the fabricated stocks and movable properties and also created an equitable mortgage of the immovable properties in favour of the claimant Bank as a security for the loan facilities. The availed facilities were utilised for round-tripping of funds, simultaneously, exaggerated turnovers and stock statements were shown for availing further credit limits. Consequently, the accused committed gross default in servicing and repayment of the accounts and hence, the loans turned into non-performing assets, ultimately causing a huge loss of Rs 23.46 crore to the public money.

As a result of these findings, the ED issued a Provisional Attachment Order on August 28, 2020, attaching the properties valued at Rs 20.65 crore which was later confirmed by the Adjudicating Authority. The possession of the said properties was also taken by the ED on September 6, 2021. Further, a Prosecution Complaint (PC) was filed before the Principal Sessions Judge Court, Chennai and cognizance of the same has been taken. The current value of the properties restituted is Rs 25.38 crore, and its restitution to the rightful claimant and victim marks a step in the ED's ongoing efforts to ensure that the Proceeds of Crime (POC) are returned to those affected.