The Enforcement Directorate has provisionally attached ₹315-crore assets of Hyderabad-based Viceroy Hotels Limited in connection with an alleged bank fraud case.
The action has been taken on the basis of an FIR lodged by the Central Bureau of Investigation against Best & Crompton Engineering Private Limited (BCEPL) and their officials. They allegedly cheated a consortium of the Central Bank of India, Andhra Bank and the Corporation Bank, causing a loss of ₹364 crore from 2010 to 2013.
BCEPL is a part of Sujana group of companies, said the agency. The ED had earlier searched the premises of several BCEPL officials and Sujana group firms in Delhi, Chennai and Hyderabad.
“On the business premises of Sujana group at Nagarjuna Hills in Hyderabad, 124 rubber stamps of different companies or entities were seized, including those of BCEPL, their LC beneficiary companies, sundry debtors and trade associates,” said the Directorate.
Shell companies
According to the agency, several shell companies were floated and money circulated among the firms using bogus invoices. A part of the loan amount was allegedly diverted to Mahal Hotels, which is also a “shell company” floated by the Sujana group. “After circuitous transactions, the amounts were finally paid to Viceroy Hotels Limited in the guise of business transaction agreement between the company and Mahal Hotels Private Limited,” it alleged.
Viceroy Hotels Limited admitted their liability towards Mahal Hotels as ₹315 crore and therefore, the properties in question were attached under the Prevention of Money Laundering Act, the ED said.