The Enforcement Directorate (ED) on Tuesday attached immovable and movable properties of Hyderabad-headquartered Viceroy Hotels worth Rs 315 crore under the money laundering law in an alleged bank fraud case.

The PMLA probe was based on a CBI FIR against a company, Best & Crompton Engineering Pvt. Ltd (BCEPL) and its officials, accused of conspiring to cheat Central Bank of India, Andhra Bank and Corporation Bank between 2010 and 2013. The total loss caused to the consortium of banks was Rs 364 crore.

BCEPL, the ED said in a statement, is a part of Sujana Group of Companies.

The Sujana group is founded by TDP leader and former union minister YS Chowdary.

“During PMLA investigation, searches were carried out at various places in Chennai, Delhi, Hyderabad and New Delhi at the residential and business premises of the key officials of BCEPL as well as other companies of Sujana Group. During these searches incriminating material including documents and electronic devices were seized. In the business premises of Sujana Group at Nagarjuna Hills, Punjagutta Hyderabad, 124 rubber stamps of different companies/entities were seized, including the rubber stamps of BCEPL, their letter of credit beneficiary companies, sundry debtors and trade associates,” ED statement added.

“Several companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one Mahal Hotels which is also a shell company floated by the Sujana Group. Through circuitous transactions, finally the amounts were paid to Viceroy Hotels Ltd in the guise of business transaction agreement between Viceroy Hotels Ltd and Mahal Hotels Pvt Ltd,” the ED further added.

The statement said Viceroy Hotels, Hyderabad had accepted their liability towards Mahal Hotels at Rs 315 crore. Accordingly, the properties of Viceroy Hotels Ltd, Hyderabad to the extent of Rs 315 crore was provisionally attached under the provisions of the PMLA, it added.

First Published: Apr 02, 2019 20:55 IST