How Did a Hyderabad Bar Owner End Up with a Five-Year Jail Sentence in a Money Laundering Case?
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Synopsis
In a shocking turn of events, the owner of a bar in Hyderabad has been sentenced to five years in prison for money laundering linked to bank fraud. This case highlights significant issues of financial crime and legal repercussions in the hospitality industry.
Key Takeaways
- Bar Owner Convicted: L. Srinivas Goud sentenced to five years.
- Financial Fraud: Involves fraudulent loan acquisition.
- Legal Repercussions: Highlights the importance of accountability.
- Enforcement Action: ED plays a crucial role in financial crime investigations.
- Public Trust: Such incidents affect public perception of the industry.
Hyderabad, Nov 25 (NationPress) A city court has sentenced the proprietors of a bar and restaurant to a rigorous imprisonment of five years in a case involving money laundering tied to bank fraud.
The Court of Metropolitan Sessions Judge determined that L. Srinivas Goud was guilty of money laundering under the Prevention of Money Laundering Act (PMLA), 2002, resulting in a five-year prison sentence for his role in the bank fraud case.
The Enforcement Directorate (ED) announced on Tuesday that the court levied a fine of Rs. 25,000 on both Goud and his establishment, Mallika Inn Bar and Restaurant.
The court found Goud guilty of money laundering under Section 3, in conjunction with Section 4 of the PMLA.
The ED's Hyderabad Zonal Office lodged a prosecution complaint against Goud and his bar after concluding an investigation into the fraudulent acquisition of a loan through forged documents and impersonation.
An impersonator pretended to be his mother before Federal Bank, securing a loan by altering the title deed documents of her property and forging her signature.
This loan was misrepresented as a housing loan intended for the renovation of the restaurant and bar. However, it was diverted for other purposes, leading to the generation of Proceeds of Crime and resulting in a loss of Rs 44.80 lakh to the bank, according to the ED.
Throughout the trial, numerous witnesses testified, and the department's arguments were finalized. Nevertheless, the accused consistently evaded court appearances, prompting the issuance of non-bailable warrants on multiple occasions.
Despite efforts to apprehend him at known locations, Goud was found to have relocated. Following extensive investigations, his new address was identified through electronic and human intelligence, confirmed against court records. Surveillance over a week confirmed his presence.
On October 27, he was located and taken into custody. He was presented in court, where he was remanded to judicial custody, which has been extended multiple times.
Meanwhile, his repeated bail requests were denied, as the court deemed it inappropriate to release him given his prior actions.
Point of View
Especially in the hospitality sector. As such incidents can erode public trust, it is crucial for regulatory bodies to enforce strict measures against financial crimes, ensuring that justice is served.
NationPress
25/11/2025
Frequently Asked Questions
What was the reason for the bar owner's sentencing?
The bar owner, L. Srinivas Goud, was sentenced for money laundering connected to fraudulent bank activities, including obtaining a loan through forgery.
How long is the prison sentence?
The court sentenced him to a rigorous imprisonment of five years.
What penalties were imposed in addition to imprisonment?
A fine of Rs. 25,000 was imposed on both Goud and his bar, Mallika Inn.
What were the fraudulent activities involved?
Goud fraudulently acquired a loan by impersonating his mother and forging documents related to her property.
How much financial loss did the bank incur?
The bank suffered a loss of Rs 44.80 lakh due to the fraudulent activities.
