ED attaches assets worth Rs 43 crore of Sheetal Refineries promoter in money laundering case

The Enforcement Directorate has attached immovable properties worth Rs 43.25 crore belonging to Sheetal Refineries Limited and its promoter in a money laundering case.

The Enforcement Directorate has attached immovable properties worth Rs 43.25 crore belonging to Sheetal Refineries Limited and its promoter Jitender Kumar Agarwal under the Prevention of Money Laundering Act for defrauding State Bank of Hyderabad and Punjab National Bank in a bank fraud case, officials said.

The ED had initiated the money laundering investigation on the basis of an FIR registered by the Central Bureau of Investigation for causing a total loss of Rs 87 crore.

The ED has alleged that the accused promoters availed various credit facilities from State Bank of Hyderabad and Punjab National Bank by submitting fabricated financial statements and invoices.

“They got Letters of Credit (LCs) issued from lending banks in the name of related shell entities as if material is being purchased. LCs were discounted by the related entities and the money so received was routed back to the promoters of Sheetal Refinery. The company defaulted in payment of LCs on the due date and the LCs devolvement caused loss to the banks,” said the ED in a statement.

Sheetal Refineries allegedly owes Rs 146 crore to the banks. The proceeds of the crime were allegedly utilised for the purchase of properties and to foreclose older loans and were not used for the stated purposes.

In this case, the ED had earlier attached six immovable properties of registered value of Rs 8.30 crore and five movable assets worth Rs 23 crore.

The total attachment in this case is Rs 52.78 crore.