ED Attaches Properties Of Blossoms Oils & Fats

The Hyderabad Zonal Office of the Directorate of Enforcement (ED) has attached immovable properties worth Rs 243 crore (book value) belonging to Sarvade Vinod Kumar and Jan Shakti Oil Products Pvt Ltd represented by M Venkata Nagendra, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the case of Blossoms Oils & Fats Limited.

The attached assets include residential as well as commercial properties.

The ED initiated an investigation against these entities on the basis of an FIR registered by the CBI BS&FC, Bengaluru, under various sections of the IPC against Blossoms Oils & Fats and others. Blossoms Oils & Fats, its directors & others allegedly defrauded Indian Overseas Bank and Indian Bank by availing themselves of loans on the basis of forged documents, and diverting the loan funds for other personal uses through their associate group companies, thereby causing unlawful and wrongful losses to the banks to the extent of Rs 266.74 crore.

The ED investigation revealed that Blossoms Oils & Fats, represented by T G Suryanarayana & others, fraudulently availed itself of credit facilities from Indian Overseas Bank and Indian Bank by submitting fabricated financials in the balance sheets of 2012 & 2013 and by submitting inflated monthly stock statements.

It also availed itself of 74 Letters of Credit (LCs) from Indian Overseas Bank and 8 LCs from Indian Bank by submitting false, fabricated & fraudulent documents in favour of associate/group companies from which no material was received and without any genuine business transactions, and utilized/diverted the loan proceeds and devolved LC proceeds for round-tripping of funds through various companies in order to repay existing loans and interest towards the devolved LCs.

The commission of these offences resulted in the generation of proceeds of crime which were laundered and used for business as well as personal purposes, the ED alleged.