ED seizes immovable properties worth ₹2.43 crore in Blossoms Oils & Fats Limited fraud

ED seizes immovable properties worth ₹2.43 crore in Blossoms Oils & Fats Limited fraud

The Enforcement Directorate’s Hyderabad zonal office has seized immovable properties worth ₹2.43 crore belonging to Sarvade Vinod Kumar and M/s Jan Shakti Oil Products Pvt. Ltd., represented by M. Venkata Nagendra, in connection with a case against M/s Blossoms Oils & Fats Limited. The seized assets include both residential and commercial properties.

The ED initiated investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI) Bank Securities & Fraud Cell (BS&FC) of Bengaluru under various sections of the IPC against Blossoms Oils & Fats Limited & others. The CBI filed a chargesheet in the case in Hyderabad.

“Blossoms Oils & Fats Limited, its directors and others defrauded Indian Overseas Bank and Indian Bank, by availing loans on the basis of forged documents and upon receipt of loan funds, they diverted the same for personal use through their associate group companies, and thereby caused corresponding unlawful wrongful losses to Indian Overseas Bank and Indian Bank to the extent of ₹266.74 crore,” said an official release from the ED.

The ED investigation revealed that Blossoms Oils & Fats Limited, along with its promoters and directors, including TG Suryanarayana, engaged in fraudulent activities.

“The company availed credit facilities by submitting falsified financial documents. These included inflated monthly stock statements, which falsely depicted significant cash and cash equivalents in the balance sheets of 2012 and 2013. Furthermore, the company obtained 74 Letters of Credit (LCs) from Indian Overseas Bank and 8 LCs from Indian Bank. These LCs were secured by submitting false and fraudulent documents in favour of associated or group companies,” said the release.

However, no material was actually received, and no genuine business transactions took place. The loan proceeds and devolved LC proceeds were diverted and utilised for round-tripping of funds through various companies. These funds were used to repay existing loans and pay interest on the devolved LCs. Commission of schedule offences under PMLA resulted in the generation of Proceeds of Crime which were laundered and used for business as well as personal purposes.