ED seizes jewellery, gold in bank fraud case against Transstroy India Ltd, directors
Transsatory India had been enjoying credit facilities under a multi-banking system, availing various credit facilities from more than 10 banks.
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NEW DELHI: The Enforcement Directorate (ED) said on Monday that it recently conducted search operations on bank lockers belonging to Cherukuri Sridhar and his family members in connection with a bank fraud case against Transstroy India Limited. Sridhar is the former CMD of Transstroy India Limited.
The operations resulted in the recovery and seizure of 9.34 kg jewellery worth Rs 6.98 crore, and 2.27 kg of gold coins and bars worth Rs 1.37 crore. The total seizure is valued at Rs 8.35 crore.
The ED had initiated a money laundering investigation based on an FIR registered by the CBI, alleging bank fraud, cheating, and criminal breach of trust by Transstroy India Ltd, its directors and others.
Transstroy India had been enjoying credit facilities under a multi-banking system, availing various credit facilities from more than 10 banks.
The ED's investigation revealed that the directors of Transstroy India conspired with others, misused loan funds, and diverted the same through various methods, such as accommodated Letters of Credit (LC) transactions, diverting funds to accounts maintained outside the consortium, and engaging in multilayered transactions with the help of entry providers.
Earlier, the ED had conducted search operations at nine locations in Hyderabad and Guntur, including the premises of Rayapati Sambasiva Rao, ex-MP, and Cherukuri Sridhar, ex-CMD of Transstroy India Limited