Rs 2.16 cr worth property attached in bank fraud case

By Express News Service  |   Published: 26th October 2017 02:09 AM  |  

CHENNAI: The Enforcement Directorate (ED) has attached two immovable property as well as fixed deposits and bank balances worth Rs 2.16 crore under the Prevention of Money Laundering Act after an exporter along with bank officials allegedly cheated UCO Bank of Rs 14 crore, according to Joint director of Enforcement Directorate K S V V Prasad.

The agency which began investigation in the case after the Central Bureau of Investigation filed an FIR against exporter L Srinivasan and the bank officials, said immovable property in Chennai and Kerala and fixed deposits and bank balances were attached.

Prasad said investigation by ED revealed that the exporter received Rs 272 crore in the name of VLS Mining and VLS Exports in the guise of export advances and routed 75 per cent of the money to Dubai under instructions of Jibu Paul of Dubai and Mohammed Hanif Sheikh of Mumbai in the guise of merchanting trade.

The persons defrauded UCO Bank to the tune of Rs 14 crore by availing overdraft facilities and demand loans on the basis of fixed deposits opened as security for foreign letters of credit issued in Merchanting Trade.

The fixed deposits were made with the money received in the guise of export advances. The scheme of things were organised in such a way that letters of credit were devolved and amount lying in fixed deposits were appropriated against non-payment of letters of credit.

Accordingly, the overdraft and loan facilities sanctioned and further enhanced by the bank was left with no guarantee and security and the exporter failed to pay the loan amount causing loss of Rs 14 crore to the bank.