Officials of the Directorate of Enforcement (ED), Hyderabad, provisionally attached properties worth ₹55.73 crore of VMC Systems Limited in a bank fraud case.
A probe was initiated by the ED following an FIR registered by the CBI, Bangalore, against M/s VMC Systems Limited, its directors and others for defrauding Punjab National Bank and others to the tune of ₹539.67 crore.
“Our investigation has revealed that in 2009, VMC Systems Ltd. approached PNB and SBI for part-financing its working capital requirements. Thereafter between 2009-2012, VMC availed credit facilities from a consortium of banks consisting of Corporation Bank, Andhra Bank, SBI, PNB and Karur Vysya Bank with SBI as the lead bank, to the tune of ₹1,673.52 crore, which is the principal amount,” said an official release from the ED.
The PNB account of VMC slipped into a non-performing asset (NPA) bracket on December 31, 2013, followed by the remaining bank accounts. In total, the loss to the all banks as on March 31, 2018 was pegged at ₹1,745.45 crore.
A probe unveiled falsification of accounts and diversion of credit facilities to multiple entities ultimately linked to VMC Systems Ltd leading to the generation of proceeds of crime.
Further investigation revealed that directors V. Satish Kumar and Himabindu’s sister V. Madhavi and others were indicted for wire fraud, tax evasion and money laundering conspiracy by the US District Court of Western District of Washington at Seattle on the basis of a suit filed by Kyko Global Inc., USA.
The Court awarded Kyko $133,000,000 due to Prithvi Information Solutions Ltd.’s fraudulent conduct and illegal racketeering activity.
The assets attached by ED include residential house of V Satish Kumar situated in Jubilee Hills; agricultural land situated in Anajpur village, Rangareddy district, acquired in the name of Rajesh Kotha, benami and associate of V Satish Kumar; a tea estate spread on 580.77 acres in Cacher district, Assam, valued at ₹11.73 crore in the name of Emmel Infra Properties (India) Pvt. Ltd. and receivables of VMC Systems Ltd. from BSNL to the tune of ₹37.03 crore.
