Hyderabad: In a fresh crackdown on alleged bank fraud, the Enforcement Directorate has provisionally attached immovable properties worth ₹26.8 crore in connection with a money laundering case linked to Sowbhagya Ispat India Pvt Ltd (SIIPL).The action was taken by the agency’s Hyderabad zonal office under provisions of the Prevention of Money Laundering Act. According to the ED, the attached assets include residential flats, a residential house and open land parcels.
The ED said its probe began after an FIR registered by the CBI, Bengaluru, under charges of criminal conspiracy, cheating, forgery and provisions of the Prevention of Corruption Act. The case relates to alleged fraud on Andhra Bank — now merged with Union Bank of India — by SIIPL, its directors and others, resulting in a wrongful loss to the bank, the ED said. Diversion of funds According to investigators, SIIPL had availed term loans and working capital facilities from Andhra Bank for setting up and expanding a steel manufacturing unit. However, the ED alleged that the company obtained enhanced credit facilities by submitting fabricated stock statements, inflated financials, forged documents and false certificates. The agency said the funds were diverted and siphoned off instead of being used for the sanctioned purposes. The money was allegedly routed through related entities and accommodation entry providers using circular transactions and fictitious turnover. The ED pegged the proceeds of crime at ₹46.5 crore. Of this, the bank has recovered about ₹15.5 crore. Properties worth ₹26.86 crore have now been identified and attached as part of the recovery process. Further investigation in the case is underway, the agency said.
