Criminal case was filed by the Enforcement Directorate (ED) in a money laundering case involving allegedly defrauding an Indian bank.
Digital Desk: The prominent Chennai business firm Saravana Stores' Gold Palace has been seized by the Enforcement Directorate (ED).
It all started on Saturday. According to the ED's statement, the connected property is valued for Rs 234.75 crore.
The document is linked to a criminal complaint the Enforcement Directorate (ED) filed in a money laundering case involving allegedly defrauding an Indian bank.
The investigation was started by the top money-laundering investigative agency based on an FIR from the CBI's Economic Offenses Division that was filed on April 25, 2022.
On May 26, the ED opened an investigation under the Prevention of Money Laundering Act (PMLA). The agency claimed in its report that late Pallakudurai, P. Sujatha, and Y.P. Shiravan, the partners of Saravana shops Gold Palace, defrauded the Bank by portraying the company as having good financial standing and faking balance sheets while the business was applying for a loan from the Bank.
According to the ED's statement, there was a significant discrepancy between the reported sales and the firm's credit entries.
In addition, the ED statement claims that the company overestimated its predicted turnover for the next fiscal years when it requested the loan.
The leading investigative organisation also claimed that the Saravana Store Gold Palace conspired with the property valuer, bank employees, and others to suggest buying the assets for more money than their actual fair market value.
The ED accused the trio of overstating their inventory, transferring the assets without the Bank's knowledge, and repaying the loan using the Open Cash Credit facilities. The agency said in the charge sheet that the company misappropriated and transferred the cash and committed other illegal acts, which resulted in a significant loss for the Bank.
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