Bank Scam

  1,768 crore Rs bank fraud case

At glance:

• The Enforcement Directorate(ED) has arrested Leo Meridian Infrastructure Projects & Hotels Ltd promoter GSC Raju and his close associate AV Prasad in a Rs 1,768 crore bank fraud case. 
• Prior on December 30, 2019, the ED connected resources worth Rs 250.39 crore having a place with blamed GSC Raju and his family and different executives of LMIPHL under the arrangements of PMLA.

Features

• ED has captured LMIPHL advertiser GSC Raju and close partner AV Prasad in a bank misrepresentation case
• Both have been sent to ED authority for seven days
• test office has just appended resources for the tune of Rs 250 crore comparable to the bank extortion

Report

1. The Enforcement Directorate (ED) has captured Leo Meridian Infrastructure Projects and Hotels Ltd (LMIPHL) advertiser GSC Raju and his nearby partner AV Prasad in a Rs 1,768 crore bank misrepresentation case.
2. The Special PMLA Court in Hyderabad has guided both the charged to be sent to ED care for seven days.
3. Prior on December 30, 2019, the ED connected resources worth Rs 250.39 crore having a place with blamed GSC Raju and his family and different executives of LMIPHL under the arrangements of PMLA.
4. The monetary test office started its examination under the Prevention of Money Laundering Act (PMLA) based on three FIRs enlisted by the Central Bureau of Investigation (CBI) and Bank Security and Frauds Cell (BS&FC) for duping a consortium of banks to the tune of Rs 1,768 Crore.
5. The test organization has guaranteed that a well-arranged intrigue was executed by Raju alongside his partners at LMIPHL to swindle banks by making an unlawful format and offering plots to 315 people.

"He further sold pieces of the effectively offered terrains to the banks to get advance for a retreat venture. Indeed, even methodology streets were likewise deceitfully sold to the banks and income records were controlled to swindle the Banks and Plot proprietors," said ED.

As indicated by authorities, the advances authorized by the banks were redirected utilizing shell merchant and temporary worker firms opened in the names of representatives of LMIPHL.

"GSC Raju created another front company and even siphoned off the cash revenue of the resort with no intention to repay the banks. The banks could not enforce the mortgaged securities due to multiple title defects and fabrication of documents by accused in the loan applications," said the agency.

Conclusion

Investigation in the money laundering case by ED has allegedly unearthed 33 shell companies and more than 40 shell vendor and contractors.

The ED investigation has so far led to the identification and attachment of 3,43,17,948 promoters' shares, 76,62,434 benami shares, 11 immovable properties of GSC Raju and his family, 38 immovable benami properties and assets of LMIPHL worth Rs 250.39 crore.