Hyderabad: The Viceroy Hotels Ltd is caught in troubled waters as the Enforcement Directorate (ED) has attached its movable and immovable properties worth Rs 315 crore in connection with an alleged bank fraud case.
The PMLA probe was conducted after CBI has registered an FIR against the company Best & Crompton Engineering Pvt. Ltd (BCEPL) and its officials and accused them of conspiring to cheat Central Bank of India, Andhra Bank and Corporation Bank between 2010 and 2013 causing the banks a loss of Rs 364 Crore.
This company BCEPL is a part of Sujana Group of Companies stated ED in its statement on Tuesday soon after attaching the properties.
“During PMLA investigation, searches were carried out at various places in Chennai, Delhi, Hyderabad and New Delhi at the residential and business premises of the key officials of BCEPL as well as other companies of Sujana Group. During these searches incriminating material including documents and electronic devices were seized. In the business premises of Sujana Group at Nagarjuna Hills, Punjagutta Hyderabad, 124 rubber stamps of different companies/entities were seized, including the rubber stamps of BCEPL, their letter of credit beneficiary companies, sundry debtors and trade associates,” ED statement added.
“Several companies were floated and money was circulated among the companies using bogus invoices and part of loan amount was diverted to one Mahal Hotels which is also a shell company floated by the Sujana Group. Through circuitous transactions, finally the amounts were paid to Viceroy Hotels Ltd in the guise of business transaction agreement between Viceroy Hotels Ltd and Mahal Hotels Pvt Ltd,” the ED further added.
Since Viceroy Hotels, Hyderabad, have admitted their liability towards Mahal Hotels amounting to Rs 315 crore, accordingly the properties of Viceroy Hotels Ltd to the extent of the liability were provisionally attached.