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ED Chennai has provisionally attached immovable properties of VGN Developers Pvt. Ltd in Guindy, Chennai to the extent of Rs 1.15 billion under the provisions of Prevention of Money Laundering Act, 2002(PMLA).
The immovable property in the form of land to the extent of 10.46 acres in Guindy, Chennai was purchased by VGN Developers Pvt. Ltd in 2013 from Hindusthan Teleprinters Ltd (HTL), a Government of India Undertaking. A case was registered by CBI, ACB, Chennai against VGN Developers Pvt. Ltd for causing wrongful loss of Rs 1.15 billion to Government of India with the acquisition of 10.46 acres of vacant land at Guindy.
The land was acquired from State Bank of India, Stressed Assets Management Branch, Chennai through private treaty sale under SARFEASI Act to recover the dues of HTL, a public sector undertaking.
It was alleged in the FIR of CBI, ACB, Chennai that the official of SBI, SAM Branch, Chennai, the company representatives and the buyers conspired among themselves and sold the prime land having a guideline value of Rs 3.87 billion for sale price of Rs 2.72 billion. This resulted in wrongful loss to the Government of India to the tune of Rs 1.15 billion.
The officers of ED Chennai initiated investigations under PMLA against the developer. It identified that the proceeds of crime in the form of wrongful gain derived by VGN Developers has been integrated in the construction of multi storied residential apartments at Guindy, which is up for sale to general public in the name of “VGN Fairmont”.
On the reasonable belief that the immovable property under construction at the 10.46 acres of land in the name of “VGN Fairmont” has received the proceeds of crime to the extent of Rs 1.15 billion, the said immovable properties have been attached provisionally under the Prevention of Money Laundering Act.