Accordingly, the properties of Viceroy Hotels, Hyderabad to the extent of `315 crore (approx.) were provisionally attached under the provisions of PMLA. Further investigations are in progress.
The Enforcement Directorate (ED) on Tuesday said that it has attached immovable and movable properties of Viceroy Hotels in Hyderabad worth `315 crore under the Prevention of Money Laundering Act, 2002 in a bank fraud case.
Investigation under PMLA was initiated on the basis of FIR registered by CBI’s Bank Security and Frauds Cell (BS&FC), Bengaluru against Best & Crompton Engineering (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. BCEPL is a part of Sujana Group of companies. The total loss caused to the consortium of banks due to the above fraud was to the tune of `364 crore.
During PMLA investigation, searches were carried out at various places in Chennai, 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 in 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 Mahal Hotels which is also a shell company floated by he Sujana Group. After circuitous transactions, the amounts were finally paid to Viceroy Hotels in the guise of business transaction agreement between Viceroy Hotels and Mahal Hotels. Viceroy Hotels, Hyderabad, admitted their liability towards Mahal Hotels as `315 crore. Accordingly, the properties of Viceroy Hotels, Hyderabad to the extent of `315 crore (approx.) were provisionally attached under the provisions of PMLA. Further investigations are in progress.