ED attaches assets worth Rs 6 cr in a bank fraud case

The Enforcement Directorate has attached movable and immovable properties worth Rs 6 crore under the Prevention of Money Laundering Act in a case of bank fraud.

The seized money was traced to R Bhuvaneswaran of Chennai, M C Ponnappa, Hamzath Naha of Mysuru and P S Subramanyam of Bengaluru, said a release issued by the ED.

The CBI had registered a case and subsequently filed the chargesheet. The CBI case was about fraudulent diversion of funds of Rs 12.50 crore, out of Rs 25 crore placed with Canara Bank by the Karnataka Industrial Areas Development Board for creation of fixed deposit in its name.

The CBI chargesheet stated that there was wrongful loss of Rs 12.50 crore to Canara Bank, Talawadi branch in Tamil Nadu, and wrongful gain to the accused.

The ED took up investigation to identify the offence of money laundering and to trace the proceeds of the crime.

It was found that the accused had withdrawn Rs 2.50 crore immediately and the remaining Rs 10 crore was initially placed in four different bank accounts for further benefits. The money was later layered and integrated through various accounts for subsequent cash withdrawal and transfer.

The investigation led to the identification of proceeds of crime in the form of seven immovable properties, two bank deposits and a car. During the search operations, the ED officers also recovered and seized Rs 20 lakh in cash.

The ED provisionally attached all the proceeds of crime belonging to the three accused.

Some of the valuables attached are a residential flat at Valasaravakkam in Chennai (Rs 60 lakh), a house at Elapully in Palakkad district (Rs 1 crore), a Polo car (Rs 10 lakh) and land at Elapully village in Palakkad (Rs 5 lakh).

The Enforcement Directorate has attached movable and immovable properties worth Rs 6 crore under the Prevention of Money Laundering Act in a case of bank fraud.

The seized money was traced to R Bhuvaneswaran of Chennai, M C Ponnappa, Hamzath Naha of Mysuru and P S Subramanyam of Bengaluru, said a release issued by the ED.

The CBI had registered a case and subsequently filed the chargesheet. The CBI case was about fraudulent diversion of funds of Rs 12.50 crore, out of Rs 25 crore placed with Canara Bank by the Karnataka Industrial Areas Development Board for creation of fixed deposit in its name.

The CBI chargesheet stated that there was wrongful loss of Rs 12.50 crore to Canara Bank, Talawadi branch in Tamil Nadu, and wrongful gain to the accused.

The ED took up investigation to identify the offence of money laundering and to trace the proceeds of the crime.

It was found that the accused had withdrawn Rs 2.50 crore immediately and the remaining Rs 10 crore was initially placed in four different bank accounts for further benefits. The money was later layered and integrated through various accounts for subsequent cash withdrawal and transfer.

The investigation led to the identification of proceeds of crime in the form of seven immovable properties, two bank deposits and a car. During the search operations, the ED officers also recovered and seized Rs 20 lakh in cash.

The ED provisionally attached all the proceeds of crime belonging to the three accused.

Some of the valuables attached are a residential flat at Valasaravakkam in Chennai (Rs 60 lakh), a house at Elapully in Palakkad district (Rs 1 crore), a Polo car (Rs 10 lakh) and land at Elapully village in Palakkad (Rs 5 lakh).

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