ED attaches property worth Rs 9.50 crore

: Enforcement Directorate has attached a Tamil Nadu based spinning and weaving mill worth Rs 9.50 crore, under the Prevention of Money Laundering Act, in a bank fraud case.
G Srinivasan of Pamba Spinning Mill Private Ltd, Udumulpet, Tirupur district allegedly defrauded Coimbatore-based SBI Global Factors Ltd to the tune of Rs 28 crore by furnishing fabricated collateral securities in the name of "fictitious firms", Enforcement Directorate said in an official release.
From the funds generated he invested in purchase of various properties and was arrested later, it said.
During investigation, Srinivasan admitted to the fraud and accepted that the money was utilised for purchase of various properties including towards purchase of Paranthaman Spinning and Weaving Mills, Tiruchengode, Namakkal district for Rs 9.50 crore.

The seller and buyer of the property admitted to the fraud, the release said, adding, the Enforcement Directorate attached the Mill under the Prevention of Money Laundering Act, it said.