ED attaches properties of Viceroy Hotels in Hyderabad

NetIndian News Network

New Delhi, April 2, 2019

The Enforcement Directorate (ED) today said it had attached immovable and movable properties of Viceroy Hotels Limited, Hyderabad worth Rs. 315 crore under the Prevention of Money Laundering Act (PMLA), 2002 in a bank fraud case.
A press release from the ED said an investigation under PMLA was initiated on the basis of a first information report (FIR) registered by the Central Bureau of Investigation (CBI), Bank Security and Frauds Cell (BS  &FC) Bangalore against Best & Crompton Engineering Pvt Ltd (BCEPL) and its officials.
They are alleged to have entered into a criminal conspiracy during the period from 2010 to 2013 for defrauding and cheating public sector banks Central Bank of India, Andhra Bank and Corporation Bank. The total loss caused to the consortium of banks due to the alleged fraud was to the tune of Rs. 364 crores. BCEPL is a part of the Sujana Group of Companies.
According to the release, during the PMLA investigation, searches were carried out at various places in Chennai, Delhi, Hyderabad and New Delhi at the residential and business premises of the key officials of BCEPL as well as other companies of Sujana Group. 
"During these searches incriminating material including documents and electronic devices were seized. In the business premises of Sujana Group at Nagarjuna Hills, Punjagutta Hyderabad, 124 rubber stamps of different companies/entities were seized, including the Rubber Stamps of BCEPL, their LC Beneficiary companies, sundry debtors and trade associates," it said.
"Investigations under PMLA revealed that several shell companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one M/s Mahal Hotels which is also a shell company floated by the Sujana Group. After circuitous transactions finally the amounts were paid to M/s Viceroy Hotels Ltd in the guise of Business Transaction Agreement between M/s Viceroy Hotels Ltd and M/s Mahal Hotels Pvt. Ltd.
"M/s Viceroy Hotels, Hyderabad, admitted their liability towards M/s Mahal Hotels as Rs 315 crores. Accordingly, the properties of M/s Viceroy Hotels Ltd., Hyderabad to the extent of Rs.315 crores (approx.) were provisionally attached under the provisions of PMLA," the release said, adding that further investigations are in progress.

(Our News Desk can be contacted at desk@netindian.in)

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