Law Enforcement Directorate seizes over Rs 400 crore in two money laundering investigations

In the second case, the agency has provisionally attached assets worth Rs 173.48 crore.

New Delhi:

The Law Enforcement Directorate has seized assets of over Rs 400 crore in two money laundering cases related to alleged bank and lottery fraud in Tamil Nadu.

In the first case, the federal agency said in a statement that an interim order seizing properties worth Rs 234.75 crore from Sarvana Stores (Gold Palace), Chennai, which is accused of deceiving the Indian bank, was issued.

The agency alleged that the late Pallakudurai, P Sujatha and YP Shiravan, partners of Saravana Stores (Gold Palace), “conspired” with unknown officials and others to deceive the bank branch located in the T district. Nagar from Chennai.

The business house had “requested loan approval by fabricating a balance sheet and projecting good financial health of the business. There is a huge disconnect between reported sales and business credit entries “, did he declare.

The company presented a “cosmetic” picture of expected revenue for the next few years when it made the loan, she said.

“In order to deceive Indian Bank, significant unjustified loss and derivative personal gain, the company, in collusion with a real estate appraiser, bank officials and certain private persons, offered to purchase assets at a significantly higher price at actual fair market value,” it said.

“The investigation under the Prevention of Money Laundering Act has adequately established the wrong motives of the accused individuals and bank officials from the outset,” the Law Enforcement Branch said.

The accused “exaggerated” inventory, transferred assets without the knowledge of the bank, used OCC (open cash credit) limits to repay the term loan, embezzled and embezzled funds for which he did not was not sanctioned, and committed other irregularities and thus, deceived the bank and caused it an unjustified loss, said the Directorate of Law Enforcement.

The money laundering case was filed in May after the Enforcement Branch became aware of an FIR CBI filed a month earlier against the accused.

In the second case, the agency provisionally seized the assets worth Rs 173.48 crore of Santiago Martin, known as the ‘Lottery King’ in Tamil Nadu.

“The adjoining properties consist of various movable and immovable property in the form of bank accounts and land located in Tamil Nadu and bearing his (Martin) name and the names of his various companies,” the Enforcement Branch said. .

The Law Enforcement Branch convicted Martin and others under the Anti-Money Laundering Act after learning of an indictment filed by the CBI, Kochi office against the accused under various sections of the IPC and Lotteries (Regulation) Act 1998.

It was found, said the Directorate of Law Enforcement, that MJ Associates partners Santiago Martin and N Jayamurugan made “an unlawful gain with a corresponding loss to the Government of Sikkim in the amount of Rs 910, 29,87,566 (approximately Rs 910.29 crore) due to inflated winning ticket claim between 01.04.2009 and 31.08.2010 which is nothing but proceeds of crime under the PMLA.” The agency in the past issued four similar seizure orders against Martin and others under which assets worth Rs 278 crore were seized.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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