Bank fraud: ED attaches properties worth Rs 31 cr

ED initiated investigation under the provisions of PMLA on the basis of FIR filed by the CBI, Bangalore against Zylog Systems Ltd; Sudarshan Venkatraman, the then Chairman and Chief Executive Officer and Ramanujam Sesharathnam, the then Managing Director and Chief Operating Officer of the company and others.

The CBI filed an FIR based on the complaint received from the Dena Bank in T Nagar that said these persons floated fictitious companies namely Woodbridge Technologies, Effica Systems and Aditicon Services (P) Ltd. They made the employees of Zylog Systems as directors of the above said companies and the fictitious invoices towards purchase of software/hardware were created in the name of these companies. Later, the invoices were used to avail the loan of Rs 100 crores from Dena Bank and the same was defaulted in repayment.

During investigation under the provisions of PMLA, ED found that the said firms had also defaulted bank loans availed from Andhra Bank, Union Bank of India, Chennai collectively to the tune of Rs 110 crore. So far, investigations have resulted into identification of one building, five flats and fixed deposit of Rs 1 crore involved in money laundering. The said immovable and movable properties valued around Rs 31 crores have been attached under PMLA.