ED attaches properties worth Rs 315 crore of Sujana Group of companies

HYDERABAD: In a major blow to the TDP and its MP YS Chowdary ahead of Lok Sabha elections, the Enforcement Directorate (ED) on Tuesday attached movable and immovable properties of Hyderabad-based Viceroy Hotels Ltd worth Rs 315 crore under the Prevention of Money Laundering Act in a bank fraud case. The hotel chain is promoted by YS Chowdary, the former Union minister and Rajya Sabha MP.

ED has taken up the investigation based on a case registered by CBI’s Bank Security and Frauds Cell (BS&FC) Bengaluru unit against M/s Best & Crompton Engineering Pvt. Ltd (BCEPL) and their officials, who entered into a criminal conspiracy during the period from 2010 to 2013 for defrauding/ cheating Central Bank of India, Andhra Bank and Corporation Bank.

The total loss caused to the consortium of banks amount to Rs 364 crore. As BCEPL is a part of Sujana Group of Companies, searches were carried out at various places 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 documents and electronic devices were seized.  In the business premises of Sujana Group at Nagarjuna Hills, Punjagutta,  Hyderabad, 124 rubber stamps of different companies and entities were seized, ED officials said.

Investigations under PMLA revealed that several shell companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one M/s Mahal Hotels, a shell company floated by the Sujana Group.

‘‘After circuitous transactions finally the amounts were paid to M/s Viceroy Hotels Ltd in the guise of Business Transaction Agreement between M/s Viceroy Hotels Ltd and M/s Mahal Hotels Pvt. Ltd,’’ officials said. During the investigation, M/s Viceroy Hotels, Hyderabad, admitted their liability towards M/s Mahal Hotels as Rs 315 crore. “Accordingly, the properties of Viceroy Hotels Ltd., to the extent of `315 crores were provisionally attached under the provisions of PMLA. Investigations are in progress, said an official release from the ED.

PMLA inquiries
Investigations under PMLA revealed that several shell companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one M/s Mahal Hotels, a shell company floated by the Sujana Group.