Two persons from Hyderabad, Khagesh Kachhwal and Varanasi Dileef, were arrested by the Enforcement Directorate (ED) authorities for allegedly aiding and abetting money launderers accused of involvement in bank fraud cases.
The ED took up investigation into a money laundering case based on a First Information Report issued by Central Bureau of Investigation’s Chennai branch against a company called RE Cables and Conductors Private Limited (RECC). The charge against RECC was that it had misappropriated loan secured from State Bank of India causing ₹74.83 crore loss to the latter.
According to ED officials, the arrested duo allegedly had number of shell entities under their control. The RECC company created several Letters of Credit (LCs) on the names of shell companies operated by the arrested persons under the guise of short term advance using bogus documents.
