Hyderabad: The Enforcement Directorate (ED), Hyderabad said it has attached land and residential properties worth Rs 48.71 crore of Transtroy (India) Limited (TIL) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. With the ongoing bank fraud investigation.
In a press release on Tuesday, the ED said the investigation began after the ACB and CBI-Hyderabad registered an FIR under the IPC and Prevention of Corruption Act (1988).
According to the statement, Transstroy took loans and credit facilities from a consortium of banks but failed to use the funds for their intended purpose. These loan accounts turned into Non-Performing Assets (NPAs) due to irregularities like frequent transfer of Letters of Credit (LC), non-payment of interest on working capital and inability to operate through consortium banks. Borrowed funds were channeled to group companies, shell entities and entities controlled by Transstroy’s promoters and directors.
The ED said its investigation revealed that Transstroy through fictitious high turnover, bogus sale and purchase transactions with its related and shell entities, fraudulently obtained credit facilities and diverted funds through adjusted LCs, resulting in a loss of Rs 5,115 crore (including interest). to consortium banks.
Further investigation revealed that the company’s directors and promoters had set up several shell entities, appointing dummy directors for fund diversion and layering of income. In the investigation, fake invoices for vehicles used in steel transportation have also been found.
The ED also found withdrawals of Rs 85.90 crore in cash from the bank accounts of Transstroy and related entities, which were used by promoters and directors for personal gain. The funds were used to acquire real estate, which was then transferred to family members to avoid involvement by law enforcement agencies.
The properties involved include land parcels transferred by one of the directors to family members, as well as residential properties of the entry provider involved in the diversion of funds. Further investigation is ongoing.