The ED said RECC and its directors had cheated the SBI and RBL by availing loans on the basis of false documents
The money was rotated and diverted using various means like accommodated LC (Letter of Credit) transactions, bogus turnover entries, round-tripping with the help of shell entities. — Facebook
Hyderabad: The Enforcement Directorate have attached an immovable property worth Rs 68.78 lakh of Praveen Kumar Kommineni under the Prevention of Money Laundering Act (PMLA), 2002 in a case against RE Cables and Conductors Pvt Ltd (RECC) for alleged misappropriation of SBI and Ratnakar Bank Ltd (RBL) funds.
The ED said RECC and its directors had cheated the SBI and RBL by availing loans on the basis of false documents. The money was rotated and diverted using various means like accommodated LC (Letter of Credit) transactions, bogus turnover entries, round-tripping with the help of shell entities. Some funds were diverted to Hitesh Jain, director of RECC. The loss caused to the banks was Rs 134.22 crore including interest.
( Source : Deccan Chronicle )
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