Loan fraud: ED attaches assets worth 224 crore

The companies are linked to serial entrepreneur C Sivasankaran, the former promoter of the mobile phone company Aircel.

The ED, Chennai, said in a statement that it initiated investigation against the two groups, bank officials and others after the Central Bureau of Investigation registered FIRs against them for non-payment of loans of USD 67 million (approximately Rs 478 crore) disbursed by the IDBI Bank, Chennai.

“Siva Group negotiated, applied and obtained loan in the name of front company Axcel Sunshine Ltd. and mis-utilised the same for striking off their earlier and other loans knowingly that the companies were under NPA (non-performing assets) and the loans were not re-paid,” the agency said.

Since the loan amount granted by IDBI was utilised for repayment of earlier loans and the earlier loan amounts were merged with the business expenses of Siva group of companies based on the concept of equivalent value, various immovable properties worth of Rs 224.25 crore and movable properties of Rs 35.32 lakh were identified and have been provisionally attached under the provisions of PMLA, 2002.

Immovable properties attached includes vacant lands and office premises at MRC Nagar and T Nagar, and movable properties including mutual funds and balance amounts available in their bank accounts.

Last April, the CBI had filed a criminal case against 15 former senior officials of the bank and 24 others including Sivasankaran, and conducted searches at 50 locations in cities including Delhi, Mumbai, Chennai, Bengaluru and Hyderabad. The case pertained to loans of Rs 322 crore and Rs 523 crore given to Sivasankaran’s companies. These loans later turned non-performing assets.