New Delhi [India], October 23 (ANI): The Enforcement Directorate (ED) on Friday conducted searches at seven premises across Telangana in the case of Kanakadhara Ventures Pvt Ltd (KVPL) and its directors in the matter of alleged diversion of credit facilities to the tune of Rs 326.49 crore.
The amount, ED said, is extended by a consortium of banks led by Punjab National Bank to the company.
Officials said the federal agency carried out the searches in Hyderabad, Secunderabad and Medchal-Malkajgiri, in Telangana under the Prevention of Money Laundering Act (PMLA).
ED's Hyderabad zone carried out the search operation based on its investigation, which has revealed that the Bank Guarantee and Letter of Credit facilities sanctioned to KVPL were misutilised, and that funds were diverted through related and conduit entities, including based on fabricated steel purchase invoices and transport documents.
Officials said KVPL is also found to have operated bank accounts outside the consortium arrangement without the knowledge of the lending banks.
The alleged diversion of credit facilities worth Rs 326.49 crore forms the basis of the ED's investigation into suspected money laundering linked to the case.
Bank guarantees and letters of credit are financial instruments commonly used by businesses to facilitate commercial transactions and secure payments. Their alleged misuse, along with the diversion of funds through intermediary entities, is among the aspects being examined by the agency.
The searches are aimed at gathering evidence relevant to the alleged financial irregularities and tracing the movement of funds, as part of the investigation under the anti-money laundering law. (ANI)
ED raids seven places in Telangana in Rs 326.49 crore bank fraud case
