Business Standard

ED seizes assets of Saravana Stores worth Rs 66 cr in money laundering case

The Enforcement Directorate said it has attached immovable properties of Saravana Stores in Chennai amounting to Rs 66.93 crore in connection with a money laundering case for defrauding Axis Bank

Enforcement Directorate, ED

IANS New Delhi

The Enforcement Directorate (ED) on Thursday said it has attached immovable properties of Saravana Stores (Gold Palace) in Chennai amounting to Rs 66.93 crore in connection with a money laundering case for defrauding Axis Bank.

The ED initiated the probe under PMLA on the basis of an FIR registered by the Central Criminal Branch, Chennai.

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"It is alleged that late Shri Pallakudurai, P. Sujatha and YP Shiravan Partners of Saravana Stores (Gold Palace) with the criminal intention approached Axis Bank to cheat it. PMLA investigation revealed that Saravana Store (Gold Palace) Chennai availed loan on the basis of forged and fabricated documents," the ED said.

 

Investigation revealed that the accused overstated the inventory, used the OCC limits to repay the loan availed from other financial institutions (banks/NBFCs), and thus misappropriated and diverted the funds for which it was not sanctioned, and committed other irregularities and thereby, the said accused persons and firms cheated the bank.

The accused firm generated Proceeds of Crime amounting to Rs 81.66 crore out of criminal activities out of which Rs 66.93 crore has been attached now.

--IANS

atk/pgh

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Dec 23 2022 | 7:40 AM IST

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