The Enforcement Directorate (ED) on Wednesday said it has attached a Maharashtra-based steel company’s assets worth more than Rs517 crore under the anti-money laundering law in connection with an alleged bank loan fraud of over Rs895 crore. The assets, including land, building and machinery, belong to SKS Ispat and Power Limited, the ED said.
A provisional order for attaching these assets has been issued under the Prevention of Money Laundering Act (PMLA) and their total value is Rs517.81 crore.
Probe pertains to money laundering case against Tiruchirapalli based company
The investigation pertains to a money laundering case based on a CBI FIR against Tiruchirappalli-based boiler manufacturing company Cethar Limited that “availed” credit facilities of Rs895.45 crore from a consortium of lenders led by the Indian Bank, SAM branch in Madurai.
The ED said accounts of Cethar Limited turned NPA (non-performing asset) on December 31, 2012 and subsequently proceedings under the Insolvency and Bankruptcy Code were initiated before the National Company Law Tribunal in Chennai in 2017. The role of the steel company came later.
ED comments on the case
The agency said, “A convoluted scheme of agreements and transactions was created to conceal the proceeds of crime of Rs793 crore, which were safely parked at SKS Ispat and Power Limited. It used the proceeds of crime for its regular business purpose.”