PMLA case: ED attaches property of VGN Developers

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The Enforcement Directorate (ED) attached a property worth Rs 115 crore of M/s VGN Developers Pvt Ltd under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) here on Tuesday.

The 10.46-acre property was purchased by M/s VGN Developers Pvt Ltd in 2013 from M/s Hindustan Teleprinters Ltd (HTL), a Government of India undertaking.

A case was registered by the Central Bureau of Investigation and the Anti-Corruption Branch for the wrongful loss of Rs 115 crore by M/s VGN Developers Pvt Ltd to the Government of India in the acquisition of the land from the State Bank of India Stressed Assets Management Branch in Chennai.

The deal took place through a private treaty sale under the SARFEASI Act to recover the dues of HTL, a public sector undertaking.

It was alleged in the FIR that the official of SBI, the company representatives and the buyers conspired among themselves and sold the prime land having a guideline value of Rs 387 crore for sale price of Rs 272 crore and thus, caused a wrongful loss to the Government of India to the tune of Rs 115 crore thereby obtained corresponding wrongful gain to themselves.

Further investigation is in progress, the ED said.