ED attaches assets of former banker for fraud

BENGALURU: The Directorate of Enforcement (ED) has issued a provisional attachment (PA) order under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, attaching assets worth Rs 1.30 crore in a case related to siphoning off the funds of Karnataka State Handicraft Development Corporation Limited (KSHDCL).

“The attached immovable assets are in the form of land and building, which are in the name of B Y Srinivas, former senior manager, Vijaya Bank, Bengaluru, and movable assets in the form of bank balance in the bank accounts of H S Nagalingaswamy, Srinivas, Ashwin Tours & Travels and PNP Enterprises,” the ED has stated.The ED had initiated investigation under the PMLA on the basis of an FIR registered at Ashok Nagar police station, Bengaluru City, against G C Kishor Kumar, former general manager, KSHDCL, and others for siphoning off the funds of KSHDCL, which is a State government undertaking.

“The investigation has revealed that Nagalingaswamy and his associates had generated proceeds of crime to the extent of `16.67 crore between December 17, 2016 and October 17, 2018 by transferring to a fake bank account with the State Bank of India, Bengaluru City Branch, in the name of ‘Managing Director, KSHDCL’ by using forged documents.

Investigation also revealed that the amounts were moved out of the bank accounts of KSHDCL with Vijaya Bank to the fraudulent bank account held with the SBI. The amount was further diverted into the bank accounts of certain entities such as Fralk Infotainment,  PNP Enterprises and in the bank account of one person by the name of D Narasaiah, from where the same was withdrawn and utilized by Nagalingaswamy and their associates for their benefits,” ED stated.