CHENNAI: The Directorate of Enforcement (ED), Chennai Zonal office, has successfully restituted property valued at Rs 25.38 crore to Indian Bank in an anti-money laundering case against Nafisa Overseas Safa Leather after investigation.
The ED had initiated an investigation on the basis of an FIR registered by Anti-Corruption Branch (CBI), Chennai, after a complaint was filed by the bank that on the basis of bogus and fabricated documents like Value Added Tax returns (VAT) and stock statement, credit facilities were processed and disbursed to the two firms.
Investigation revealed that the accused had taken a loan from Indian Bank by submitting fabricated documents of stocks and movable properties, and had also created an equitable mortgage of immovable properties as collateral in favour of the bank.
The availed facilities were used for round-tripping of funds, and 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. Hence, the loans turned into NPAs, ultimately causing loss of Rs 23.46 crore to the bank.
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 that was later confirmed by the Adjudicating Authority. ED took possession of the properties September 6, 2021.
Further, a complaint (PC) was filed before the Principal Sessions Judge Court, Chennai. The current value of the properties restituted is Rs 25.38 crore.