Hyderabad Court Orders ED to Return Rs 30 Crore in Properties to SBI
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Synopsis
A Special Court in Hyderabad has sanctioned the ED to return properties worth Rs 30.71 crore to SBI, linked to a money laundering case involving Sheetal Refineries Limited, which caused significant financial losses to both SBI and PNB.
Key Takeaways
- Properties worth Rs 30.71 crore returned to SBI.
- Sheetal Refineries caused losses of Rs 136.29 crore to SBI.
- Fraudulent Letters of Credit used for illicit gains.
- ED's investigation continues into money laundering activities.
- Losses to PNB estimated at Rs 53.82 crore.
New Delhi, Feb 15 (NationPress) A Special Court in Hyderabad has permitted the ED to transfer properties valued at Rs 30.71 crore to the State Bank of India, in relation to a money laundering investigation concerning Sheetal Refineries Limited.
The ED reported that the company inflicted a loss of Rs 136.29 crore on SBI, in addition to Rs 53.82 crore on Punjab National Bank.
Previously, SBI submitted restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, to the Special Court (PMLA) of the Metropolitan Sessions Judge in Hyderabad, seeking the release of immovable assets seized by the ED's Hyderabad Zonal Office.
The ED had provisionally attached assets worth Rs 52.77 crore through orders dated August 3, 2016 and January 27, 2022.
During the proceedings regarding SBI's request, the ED urged the Court to return the seized assets to their rightful owner, SBI, for the benefit of the public. On February 7, the court approved the ED's petition and ordered the return of immovable properties valued at Rs 30.71 crore belonging to Sheetal Refineries Limited and its Directors.
The ED is conducting an investigation into the money laundering activities associated with Sheetal Refineries Ltd (SRL) due to the financial damage it caused to various banks.
SRL acquired multiple credit facilities from a group of banks, including SBI and PNB, which subsequently became non-performing assets (NPA).
The company procured 21 fraudulent Letters of Credit from these banks, based on falsified invoices, without any legitimate supply of goods or valid business activities, as stated by the ED.
The promoters of SRL funneled the funds from the devolved Letters of Credit into both SRL's accounts and their personal accounts, including those of family members.
A portion of the illicit proceeds was withdrawn as cash, while a significant amount was utilized to invest in various immovable properties under the names of the promoters and their relatives.
This resulted in a wrongful loss of Rs 136.28 crore to SBI and Rs 53.82 crore to PNB, according to the ED.
