Enforcement Directorate (ED) stated that assets worth Rs 43.25 crore of a Hyderabad-based firm have been attached under the anti-money laundering law in connection with an alleged bank loan fraud case.
A provisional order under the Prevention of Money Laundering Act (PMLA) has been issued by the agency attaching 15 land properties located in Telangana, in the case against Sheetal Refineries Ltd. and its promoter and managing director Jitender Kumar Agarwal.
The money laundering case was filed on the basis of an FIR registered by the CBI in Bengaluru against the accused for ''causing a total loss of Rs 87 crore'' to the State Bank of Hyderabad (now SBI) and the Punjab National Bank (PNB).
The ED said that the accused promoters ''availed credit facilities from SBH and PNB Hyderabad, by submitting fabricated financial statements, invoices, etc''.
''They got letters of credit (LCs) issued from lending banks in the name of related shell entities as if material is being purchased.
The company ''defaulted'' in payment of LCs on due date and the devolvement of LCs caused loss to the banks, it alleged.
(With inputs from PTI)
