Enforcement Directorate summons TDP MP involved in Rs 5,700 crore bank fraud
The Enforcement Directorate has seized crucial documents of Sujana Group of Companies which show that the company has been involved in several other financial crimes in past.
The group is allegedly involved in defrauding banks to the tune of more than Rs 5,700 crore. "Documents recovered revealed that various FEMA/DRI/CBI cases were existing against the group companies. Similarly documents related to forex transactions were also seized," said the ED.
According to the agency, documents recovered indicate that the group controls over 120 companies and most of them are either non-operational or companies that exist only on paper without any genuine business activities.
"Preliminary statements indicate that certain loans to group companies were sanctioned against the personal guarantee of YS Chowdhary. At YS Chowdhary's homes, six high end cars (Ferrari, Range Rover, Benz etc.) were found to be registered under the names of dummy companies. These vehicles have been seized under the provisions of PMLA," added the ED.
YS Chowdhary has been summoned by the ED. He has been told to be present before the agency for further investigations on November 27.
The CBI's Bangalore Unit has registered three FIRs based on complaints from three banks stating that the total loss caused to the consortium of banks is to the tune of Rs 364 crore, (Central Bank of India - Rs 133 crore, Andhra Bank - Rs 71 crore and Corporation Bank - Rs 159 crore) by M/s Best & Crompton Engineering Projects Ltd, Chennai (BCEPL). The company had obtained loans from these banks through fraud accounts and by submitting false statements.
Based on these FIRs, investigations under the Prevention of Money Laundering Act (PMLA) were initiated by the Directorate of Enforcement, Chennai.
As part of these investigations, searches had earlier been conducted on October 8, 2018 at the residential and office premises of key officials of BCEPL at Chennai, Bangalore and Hyderabad.
During the search proceedings, certain incriminating documents/records were recovered and seized for further investigation.
"Searches also resulted in the recovery and seizure of 126 rubber stamps of various shell companies from the business premises at Plot No.18, Nagarjuna Hills, Punjagutta, Hyderabad-500082. It was also identified that the above business premises has accommodated many companies of Sujana Group," said a senior official of ED.
ED has also claimed that verification of the seized documents/records indicated BCEPL along with other group companies of Sujana Group were functioning under the chairmanship of YS Chowdhary who is a sitting Member of Parliament-Rajya Sabha, representing the Telugu Desam Party.
Investigations revealed that all the directors of various Sujana Group Companies act under the instructions of YS Chowdary, the evidence of which can be seen in emails and communications recovered from the business/residential premises of BCEPL directors.
"Further, in their voluntary statements tendered under Section 50 of PMLA, directors of BCEPL had stated that YS Chowdhary is the person responsible for all activities of Sujana Group of Companies. They all have acted/rendered their signatures on the insistence of YS Chowdhary either directly or through CFO and CS of Sujana Group of Companies. They have stated that they are namesake directors and as such they had no idea as to how the funds of BCEPL were utilized and that the entire operations/transactions of Sujana Group of Companies are known only to key persons," said the official.