ED attaches Rs 2.43 crore assets in Blossoms Oils & Fats case

Hyderabad: Enforcement Directorate (ED), Hyderabad has attached immovable properties worth Rs. 2.43 Crore belonging to Sarvade Vinod Kumar and Jan Shakti Oil Products Pvt. Ltd. represented by M. Venkata Nagendra. The attached immovable assets include residential and commercial properties.

The ED initiated action under the Prevention of Money Laundering Act (PMLA), 2002 in the Blossoms Oils & Fats Limited case. The Anti-Money Laundering agency stepped into action based on the case registered by Central Bureau of Investigation(CBI), Bengaluru under various sections of IPC, 1860 against M/s Blossoms Oils & Fats Limited & others.

“CBI filed a Charge Sheet in 2019 in the Court of Additional Chief Metropolitan Magistrate Cum Special Sessions Judge for CBI cases, Hyderabad. Blossoms Oils and Fats Limited, its Directors and others defrauded Indian Overseas Bank and Indian Bank by obtaining loans based on forged documents and upon receipt of loan funds,” said the agency in a statement.

Accused caused Rs 266 crore loss to Indian Overseas Bank and Indian Bank

According to the CBI, they diverted the funds for personal use through their associate group companies. This caused unlawful losses of Rs 266 Crore to Indian Overseas Bank and Indian Bank, added ED.

Further ED probe found that Blossoms Oils & Fats Limited, led by its Promoters and Directors, T G Suryanarayana andothers, fraudulently availed credit facilities from Indian Overseas Bank and Indian Bank. They did this by submitting fabricated and rosy financials, showing huge cash and cash equivalents in the balance sheets of 2012 and 2013.

They allegedly inflated stock statements and secured 74 Letters of Credit (LC) from Indian Overseas Bank and 8 LCs from Indian Bank with false documents for fake transactions. They used the loan proceeds and devolved LC proceeds for round-tripping of funds through various companies to repay existing loans availed and also for payment of interest towards the devolved LCs. This led to offenses under PMLA, 2002, generating Proceeds of Crime which were laundered and used for business and personal purposes.