New Delhi, Feb 15 A Special Hyderabad court has allowed the ED to hand over properties worth Rs 30.71 crore to the State Bank of India in connection with a money laundering case against Sheetal Refineries Limited.
Apart from causing a loss of Rs 136.29 crore to the SBI, the company caused a loss of Rs 53.82 crore to Punjab National Bank, the ED said.
Earlier, the State Bank of India (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, for release of immoveable properties seized by the ED, Hyderabad Zonal Office.
The ED had attached assets worth Rs 52.77 crore through provisional attachment orders dated August 3, 2016 and January 27, 2022.
During the hearing on the SBI's plea, the ED, Hyderabad, urged the Court to release the seized amount to the rightful claimant, SBI, in the public interest. The court on February 7 allowed the ED petition and ordered for release of immovable properties worth Rs 30.71 crore of Sheetal Refineries Limited and its Directors.
The ED has been investigating a money laundering case against Sheetal Refineries Ltd (SRL) due to the loss it caused to several banks.
SRL availed various credit facilities from a consortium of banks, including SBI and PNB, which later turned into non-performing assets (NPA).
The company availed 21 fraudulent Letters of Credit from these banks, based on fake and forged invoices, without any actual supply of material or legitimate business transactions, the ED said.
The promoters of SRL diverted the funds from the devolved Letters of Credit into SRL's bank accounts, as well as their own and family members' accounts.
The proceeds of crime were partly withdrawn in cash while a significant part was also used to make investments in various immovable properties in the names of the promoters and their family members.
This caused a wrongful loss of Rs 136.28 crore to SBI and Rs 53.82 crore to PNB, the ED said.
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