The Enforcement Directorate (ED) said Wednesday it has provisionally attached assets worth Rs 40.14 crore of Bengaluru-based Kavveri Telecom Infrastructure Limited under the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated a money-laundering investigation based on a first information report (FIR) registered by the Central Investigation Bureau in July 2017. It was filed based on a complaint by the then deputy general manager of Dena Bank alleging cheating by the company and its directors concerning loans taken by them.
According to the ED, during the investigation, it was noticed that the company and its directors had taken a loan from the erstwhile Dena Bank to the tune of Rs 45 crore in the name of purchase of equipment, however, the same was diverted through its sister concerns and conduit entities controlled by them. For availing the loan, the directors of the company submitted fake and fabricated tax invoices and lorry receipts with the bank, it said.
The ED said the loan amount was diverted using various accounts of group entities which include conduit entities and the personal saving accounts of promoters/directors. Further, the diverted loan amount was rotated among the bank accounts of group entities and directors and a web of transactions was created to project this money as untainted. Subsequently, a part of this money, to the tune of Rs 27.14 crore, was siphoned off abroad and parked there, the ED added.
Also, the proceeds of crime were used to acquire movable and immovable properties in the name of directors and their family members. When the account became a non-performing asset (NPA), the outstanding loan was Rs 40.18 crore, the ED said.
Further investigation is in progress, the ED added.