The Enforcement Directorate (ED) has seized assets worth over Rs 40.14 crore from a Bengaluru-based company in a money laundering investigation related to a case of bank fraud.
The adjoining assets, which include residential apartments, land, farmland and bank deposits, are owned by Kavveri Telecom Infrastructure Limited. The money laundering case against the company stems from a CBI FIR filed in July 2015.
The CBI registered the FIR after Dena Bank filed a lawsuit against the company and its directors accusing them of misleading the bank in connection with a default.
“The company and its directors took out loans from the former Dena Bank to the tune of Rs 45 crore in the name of purchasing equipment. However, it was misappropriated by its sister companies and controlled conduit entities. directors of the company submitted false and fabricated tax invoices and truck receipts etc. to the bank,” ED said in a statement.
The loan proceeds were “diverted” using various group entity accounts which include conduit entities and the personal savings accounts of promoters or administrators, he said, adding that it was transferred between the bank accounts of group entities and directors. A network of transactions has been created to project this money as uncontaminated, he said.
“Some of this money to the tune of Rs 27.14 crore was siphoned off overseas and parked there. Additionally, the proceeds of crime were used to acquire movable and immovable property on behalf of the directors and their family members,” the ED said adding the account was declared NPA (non-performing asset) later.