ED attaches properties of Tamil Nadu builder in relation to Rs 1,340 cr fraud
New Delhi: Central Government agency ED has confiscated jewellery worth Rs 4.4 crore in a raid on the home of Chairman and Managing Director of Cethar Ltd and Director of Messrs NSK Builders Pvt Ltd in Trichy. The ED is probing siphoning off of Rs 1,340 crore by the two companies.
The raid was conducted under the Prevention of Money Laundering Act, 2002 (PMLA), ED said in a statement.
FIR was filed against Cethar Ltd's Chairman K Subbaraj and MD K Pothiraj. FIR was also registered against NSK Kalairaja, Director of NSK Builders Pvt Ltd.
Another cenral government probe agncy CBI had registered FIRs under section 420, 471 and 120(B) of IPC in relation to misappropriation of Rs 1340 crore allegedly by Cethar Ltd, Trichy and some other individuals associated with him for availing credit facilities. They systematically defrauded Indian Bank and many other banks coming under consortium, the statement said.
ED investigation found that major part of the loan sanctioned by the banks as working capital to Cethar Ltd was siphoned off. It was diverted by the company and its chairman and the MD to some subsidiaries of Cethar Ltd and many other companies as bad debts.
A huge amount of the loan money was transferred to NSK Builders in the name of constructions but that also was siphoned off.