ED attaches hotel worth Rs 315 cr in fraud case

Investigation under PMLA was initiated based on a FIR registered by the CBI against Best & Crompton and their officials, who entered into a criminal conspiracy from 2010 to 2013, to cheat Central Bank of India, Andhra Bank and Corporation Bank. The total loss caused to the consortium of banks due to the fraud was Rs 364 crore. BCEPL is a part of Sujana group of companies.

During the investigation, searches were carried out at various places in Chennai, Delhi, Hyderabad and New Delhi at the residential and business premises of the key officials of BCEPL as well as other companies of Sujana group.

During these searches, incriminating material including documents and electronic devices, were seized. Rubber stamps of different companies/entities were seized from the business premises of Sujana group at Nagarjuna Hills, Punjagutta, Hyderabad. The 124 seized rubber stamps included those of BCEPL, their LC beneficiary companies, sundry debtors and trade associates, a press release from the ED said on Tuesday.

The ED’s probe further revealed that several shell companies were floated and money was circulated among the companies using bogus invoices. A part of the loan amount was diverted to one Mahal Hotels, which is also a shell company floated by the Sujana group. After circuitous transactions, the amount was finally paid to Viceroy Hotels Ltd.