Bank fraud case: ED attaches land worth Rs 115 cr of Chennai firm

The Enforcement Directorate today said it has attached land worth Rs 115 crore of a Chennai-based company in connection with its money laundering probe related to a bank fraud case.
The agency said it issued orders, under the Prevention of Money Laundering Act (PMLA), for provisional attachment of 10.46 acres of land of VGN Developers Private Limited at Guindy in Chennai.
It said the land was purchased by the company in 2013 from Hindusthan Teleprinters Limited (HTL), a central government undertaking.
The ED said it took over the case of alleged fraud against the State Bank of India after taking cognisance of a CBI FIR.

"A case was registered by the CBI for the wrongful loss of Rs 115 crore caused by M/s VGN Developers Private Ltd to Government of India in the acquisition of 10.46 acres of vacant land at Guindy from the State Bank of India's Stressed Assets Management branch in Chennai through a private treaty sale under SARFAESI Act to recover the dues of HTL," the ED said in a statement.
It said the Central Bureau of Investigation complaint alleged that representatives of the company and the buyers "conspired among themselves" and "sold the prime land having a value of Rs 387 crore for a sale price of Rs 272 crore and thus caused a wrongful loss to the government to the tune of Rs115 crore and obtained corresponding wrongful gain to themselves."

The ED said the "wrongful gain" so earned was integrated in the construction of multi-storeyed residential apartments at Guindy for sale to general public in the name of VGN Fairmont. "Hence, the land was attached," it said.