The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached immovable properties valued at Rs 26.86 crore in a bank fraud case involving Sowbhagya Ispat India Pvt. Ltd. (SIIPL). These properties, including residential flats, a house, and open plots of land, were attached under the Prevention of Money Laundering Act (PMLA), 2002. The ED’s action follows an investigation initiated based on an FIR registered by the CBI, BS&FB, Bangalore, against SIIPL, its directors, and others for defrauding Andhra Bank (now Union Bank of India).
The ED investigation uncovered that SIIPL had obtained term loans and working capital facilities from Andhra Bank for setting up a steel manufacturing unit. However, the accused individuals managed to secure enhanced credit facilities through fraudulent means, such as submitting fabricated stock statements, inflated financials, forged documents, and false certificates. These loan funds were diverted and siphoned off instead of being used for the intended purposes, with funds being channeled through related entities and accommodation entry providers to inflate the company’s financial position.
Further revelations from the investigation indicated that the accused parties resorted to submitting false and inflated stock statements, manipulating receivables, and engaging in fictitious transactions to maintain drawing power artificially and access higher credit limits from the bank. Through these deceitful tactics, the accused individuals obtained and misused bank loans, leading to a wrongful loss for the bank and the generation of Proceeds of Crime totaling Rs 46.52 crore. While the bank has recovered Rs 15.52 crore, properties valued at Rs 26.86 crore have been identified and attached under the PMLA provisions for further recovery of the remaining Proceeds of Crime amounting to Rs 31 crore.
