IDBI loan fraud case
The Enforcement Directorate (ED) Friday said it has attached assets worth Rs 224.6 crore of a firm linked to former Aircel promoter C Sivasankaran in connection with a money laundering probe in an alleged multi-crore loan fraud at IDBI Bank.
The agency said it has issued a provisional order for attachment of assets under the Prevention of Money Laundering Act (PMLA) against Siva Group of Companies and Axcel Sunshine Limited located in the British Virgin Islands in the Caribbean.
The ED, in a statement, said the assets include land parcels and office premises located at MRC Nagar and T Nagar in Chennai, mutual funds and deposits available in bank accounts. The total amount of attachment in the case is Rs 224.6 crore, it said.
The agency said it registered a criminal case under PMLA, taking cognisance of a CBI FIR against the firms, C Sivasankaran and others for non-payment of loans of USD 67 million (about Rs 470 crore) disbursed by an IDBI Bank branch located in Chennai.
The ED said its probe found that the "Siva Group negotiated, applied and obtained loan in the name of front company Axcel Sunshine Ltd. and mis-utilised the same for striking off their earlier and other loans knowingly that the companies were under NPA (non-performing assets) and the loans were not re-paid" by them.
It added that the loan amount "granted by IDBI has been utilised for repayment of earlier loans and the earlier loan amounts were merged with the business expenses of Siva Group of Companies."The CBI had last year filed a criminal case in the incident.
The case pertains to loans of Rs 322 crore and Rs 523 crore given to the companies of Sivasankaran. The loans later turned non-performing assets.
