ED attaches property of Chennai-based company under anti-money laundering law

New Delhi, Sep 11 (PTI) The ED has provisionally attached an immovable property to the extent of Rs 75 lakh of Chennai-based Velohar Infra Private Limited under provisions of the Prevention of Money Laundering Act (PMLA) in a case related to alleged misappropriation of government funds from the accounts of the Karnataka State Handicraft Development Corporation Limited (KSHDCL).

The Enforcement Directorate (ED) has said that during the investigation, its Bengaluru zonal office found that an amount of Rs 3.74 crore was allegedly diverted to Venture Cottage Industrial Trade Corporation at Allahabad Bank, Chennai.

The proceeds were then withdrawn in cash and "siphoned off by the conspirators", the federal agency has claimed.

Sateesh V Vambashe, a bank official, allegedly in a conspiracy with J R Pradhan, Mohammed Rafi, Mohammed Aboobacker and Sarath Chandran, "fraudulently" opened two current accounts in the name of KSHDCL at the State Bank of India's (SBI) Hesaraghatta branch, allegedly using forged resolutions and fabricated authorisation letters, the ED said in a statement.

"An amount of Rs 5.01 crore belonging to KSHDCL was transferred to these fake accounts. While only Rs 25 lakh was placed in a genuine FD, a forged FDR of Rs 5.01 crore was created and handed over to KSHDCL, thereby concealing misappropriation of the funds," it added.

Of the balance, an amount of Rs 1 crore was allegedly transferred to Velohar Infra Private Limited, Chennai, and a sum of Rs 3.74 crore was "diverted" to Venture Cottage Industrial Trade Corporation at Allahabad Bank, Chennai.

Subsequently, the proceeds were withdrawn and the ED investigation found that an amount of Rs 1 crore was credited into the account of Velohar Infra Private Limited on July 30, 2018 through three RTGS transactions from the SBI account of the corporation.

"Out of this, Rs 25 lakh was withdrawn in cash and handed over to one of the accused, while the remaining Rs 75 lakh was utilised by the company and its director, Vijayalakshmi S, for personal and business expenses, despite being aware that the funds were proceeds of crime," the statement said.

The agency added that further investigation has found that Velohar Infra Private Limited allegedly owns a parcel of land admeasuring 32.55 cents at "Sunrise Avenue", Sholinganallur Village, Kancheepuram district in Tamil Nadu, with a sale consideration of Rs 3.8 crore.

"Thus, the said property of Velohar Infra Private Limited has provisionally been attached to the extent of Rs 75 lakh in value thereof, under section 5(1) of PMLA, 2002. Further investigation is under progress," the statement said. PTI NES ACB RC