ED ties Chennai jeweler’s Rs 234 crore asset for money laundering – The New Indian Express
CHENNAI: Gold Palace, the main property of Saravana Stores in T Nagar, has been seized by the Enforcement Directorate (ED) for defrauding Indian Bank in a money laundering case. The property is worth Rs 234.75 crore.
The ED initiated the investigation under the Prevention of Money Laundering Act on May 26, 2022, based on an FIR dated April 25, 2022, on file with the Economic Offenses Wing (CBI). It is alleged that the partners of Saravana Stores (Gold Palace) – Pallakudurai (deceased), P Sujatha and YP Shiravan – deceived the bank by fabricating balance sheets and projecting good financial health of the company while seeking a loan from form the bank.
ED in a statement said, “There is a huge disconnect between reported sales and company credit entries. The company presented a cosmetic picture of the expected turnover for the next years at the time of the use of the loan. In addition, to deceive Indian Bank, a large unjustified loss and personal gain, the company, in collusion with Property Valuer, Bank officials and some people, offered to buy assets at a price well above the fair actual market value.
The investigation revealed that the trio had overstated inventory, transferred assets without the knowledge of the bank, used Open Cash Credit (OCC) limits to repay the term loan, embezzled and embezzled funds for which he had not been sanctioned and committed other irregularities causing unjustified loss to the bank. The company generated Rs 240 crore in criminal activity, the statement added.