3 days ago
1
The Directorate of Enforcement (ED), Bengaluru Zonal Office, has arrested Karuturi Venkateshwara Rao, managing manager of Deepak Cables (India) Limited, successful transportation with an alleged ₹899.35 crore slope fraud involving a consortium of banks led by the State Bank of India (SBI).
Following his apprehension connected June 2 nether the Prevention of Money Laundering Act (PMLA), 2002, a peculiar tribunal successful Bengaluru remanded him to 10 days of ED custody.
The ED alleged that Mr. Rao generated proceeds of transgression and subsequently layered and integrated the funds done aggregate slope accounts linked to entities operated and controlled by him.
The wealth laundering probe stems from a CBI lawsuit registered against Deepak Cables India Ltd., Rao and others for allegedly cheating a consortium of banks to the tune of ₹899.35 crore. According to the agency, the institution obtained important recognition facilities from banks and diverted the funds portion submitting falsified fiscal statements and manipulating its books of accounts to unafraid and proceed availing loans.
The ED claimed that the probe revealed that the accused allegedly utilized a web of entities to make fictitious income and purchases, prosecute successful circular trading and contented fake firm guarantees. These transactions were allegedly utilized to inflate turnover, heighten drafting powerfulness from banks, evergreen existing loans and divert funds done related companies and idiosyncratic accounts to conceal their origin.
Investigators besides recovered that ample amounts of indebtedness funds were transferred to entities allegedly controlled by Rao without immoderate morganatic concern rationale. The diverted funds were allegedly routed done assorted channels successful an effort to disguise their illicit nature.
Earlier searches conducted successful the lawsuit resulted successful the seizure of golden jewellery and currency worthy ₹1.27 crore, portion slope accounts holding balances of astir ₹18 crore were frozen.
