Leo Meridian Infrastructure Projects and Hotels Ltd involved in the scandal of money laundering.The Enforcement Directorate (ED) said that it has arrested G.S.C. Raju, promoter of Leo Meridian Infrastructure Projects and Hotels Limited (LMIPHL) and his close associate A.V. Prasad in connection with its probe into money laundering case worth Rs 1,768 crore.
The ED said that the accused was arrested after the central financial probe agency filed three cases on the basis of the Central Bureau of Investigation (CBI) report for fraud availing loans by the accused in connivance with others from a consortium of banks and then defaulting on the same totalling to Rs 1,768 crore.
Under the charges of Prevention of Money Laundering Act (PMLA) Raju arrested by the court.
Since, the officials noted the arrested accused produced before the court. They had seven-day ED custody. .
On December 30 last year, the ED had attached assets to the tune of Rs 250.39 crore belonging to accused LMIPHL, Raju, his family, his ‘benamis’ and directors of LMIPHL, under the provisions of PMLA.
Raju executed a well planned conspiracy along with the other officials of Leo Meridian Infrastructure Projects and Hotels Ltd. It defrauded the banks and created illegal layout. Hence, it sold plots to 315 persons.
Additionally, he further mortgaged parts of the already sold lands to the banks to obtain loan for a resort project. Even approach roads were also fraudulently mortgaged to the banks and revenue records were manipulated to cheat the banks and plot owners,” an ED official said.
The shell vendors siphoned off the loans sanctioned by the banks. The part of diverted funds diverted back to LIPHL.
The part of diverted funds diverted back to Leo Meridian Infrastructure Projects and Hotls Ltd.
The officials probed and found more than 33 shell companies along with bogus share capital book entries in the balancesheet of LMIPHL. Raju created complicity of certain Chartered Accountants. they used bogus equity to show fraudulent margin money. It improved the debt-equity ratio of LMIPHL. Therefore, they cheated the banks by providing huge loans.
The ED office said that Raju created a large no. of fake vendors. Sanctioned loans siphoned off. Through bogus invoices and bogus procedures its done.
“By using bogus capital equity, bonus shares taken on fake balance sheets. Raju and his family became owner of 95 per cent of the company without any investment.
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