Rs 30 crore assets restituted to SBI in Telangana loan 'fraud' case: ED
The case pertains to the company named Sheetal Refineries Limited and some other linked entities.
Hyderabad: The Enforcement Directorate (ED), Hyderabad, has completed the restitution of properties worth Rs 30.71 crore to the State Bank of India (SBI) in a money laundering case involving Sheetal Refineries Limited (SRL) and its directors. The ED’s investigation revealed that SRL had secured credit facilities from a consortium of banks, including SBI and Punjab National Bank (PNB), which later turned into non-performing assets (NPAs). The company fraudulently obtained 21 Letters of Credit (LoCs) using fake invoices, with no supply of goods or legitimate business transactions.
SRL’s promoters allegedly diverted funds from these LoCs into the company’s accounts, as well as their own and those of family members. A portion of the illicit proceeds was withdrawn in cash, while the rest was invested in immovable properties under various names. Their fraud resulted in losses of Rs 136.28 crore to SBI and Rs 53.82 crore to PNB.
The ED had attached assets worth Rs 52.77 crore in 2016 and 2022 through provisional attachment orders. Following the ED’s initiative, SBI filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA) of the Metropolitan Sessions Judge, Hyderabad, seeking the release of immovable properties seized by the ED.
The court approved the petition, ordering the release of assets to SBI in the public interest. The ED officials stated that the latest restitution marks another step in the agency’s efforts to restore properties to their rightful claimants and return proceeds of crime to rightful claimants.
