The Enforcement Directorate (ED) has attached immovable and movable properties of M/s Viceroy Hotels Ltd., Hyderabad worth Rs. 315 crore under the Prevention of Money Laundering Act (PMLA), 2002 in a bank fraud case.
Investigation under PMLA was initiated on the basis of an FIR registered against M/s Best & Crompton Engineering Pvt. Ltd (BCEPL) and their officials, "who entered into a criminal conspiracy during the period from 2010 to 2013 for defrauding/ cheating Central Bank of India, Andhra Bank and Corporation Bank".
The total loss allegedly caused to the consortium of banks due to the above fraud was to the tune of Rs.364 crore. BCEPL is a part of Sujana Group of Companies.
During PMLA investigation, searches were carried out at various places at 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. In the business premises of Sujana Group at Nagarjuna Hills, Punjagutta Hyderabad, 124 rubber stamps of different companies/entities were seized, including the Rubber Stamps of BCEPL, their LC Beneficiary companies, sundry debtors and trade associates.
"Investigations under PMLA revealed that several shell companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one M/s Mahal Hotels which is also a shell company floated by the Sujana Group. After circuitous transactions finally, the amounts were paid to M/s Viceroy Hotels Ltd in the guise of Business Transaction Agreement between M/s Viceroy Hotels Ltd and M/s Mahal Hotels Pvt. Ltd." informed ED.
"M/s Viceroy Hotels, Hyderabad, admitted their liability towards M/s Mahal Hotels as Rs 315 Crores. Accordingly, the properties of M/s Viceroy Hotels Ltd., Hyderabad to the extent of Rs.315 Crores (approx.) were provisionally attached under the provisions of PMLA," ED said.
Further investigation is underway.
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