The Enforcement Directorate, on Thursday, said that it has arrested V Satish Kumar, Managing Director(MD), Prithvi Information Solutions Limited, under the Prevention of Money Laundering Act (PMLA), 2002, in Rs. 3,316 Crore bank fraud case.
"Enforcement Directorate has arrested Vuppalapati Satish Kumar, MD of M/s Prithvi Information Solutions Limited (M/s PISL), on 12.08.2021 under the PMLA, 2002, for indulging in the offence of money laundering and causing a loss of around Rs. 3,316 Crore to a consortium of public sector Banks with the connivance of Hima Bindu B, MD of M/s VMC Systems Limited," the probe agency said in an official statement.
ED started the money laundering probe on the basis of an First Information Report (FIR) filed by Central Bureau of Investigation (CBI) against VMC Systems Limited (VMCSL). As per the Central Agency, "VMCSL had taken loans from a consortium of Banks and the present dues outstanding to all the Banks is worth Rs. 3,316 Crore."
The forensic investigation showed that VMCSL initiated loans to several related entities to increase its books of accounts. It is also revealed that, VMCSL had opened several Letters of Credit (LCs) worth Rs. 692 Crore in the name of fake/dummy entities, which were subsequently devolved, stated ED official statement.
"V Satish Kumar through his company M/s PISL and M/s Ennar Energy Limited and with the active assistance of his sister Hima Bindu (MD of M/s VMCSL), in order to dodge the banks, created false/exaggerated operational revenues by generating fake sales/purchase invoices through the companies controlled by their family members. Mr. V. Satish Kumar and Mrs. V Hima Bindu siphoned off a part of proceeds of crime by remitting it to the overseas entities controlled by their family members" ED further stated.
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"Enforcement Directorate has arrested Vuppalapati Satish Kumar, MD of M/s Prithvi Information Solutions Limited (M/s PISL), on 12.08.2021 under the PMLA, 2002, for indulging in the offence of money laundering and causing a loss of around Rs. 3,316 Crore to a consortium of public sector Banks with the connivance of Hima Bindu B, MD of M/s VMC Systems Limited," the probe agency said in an official statement.
ED started the money laundering probe on the basis of an First Information Report (FIR) filed by Central Bureau of Investigation (CBI) against VMC Systems Limited (VMCSL). As per the Central Agency, "VMCSL had taken loans from a consortium of Banks and the present dues outstanding to all the Banks is worth Rs. 3,316 Crore."
The forensic investigation showed that VMCSL initiated loans to several related entities to increase its books of accounts. It is also revealed that, VMCSL had opened several Letters of Credit (LCs) worth Rs. 692 Crore in the name of fake/dummy entities, which were subsequently devolved, stated ED official statement.
"V Satish Kumar through his company M/s PISL and M/s Ennar Energy Limited and with the active assistance of his sister Hima Bindu (MD of M/s VMCSL), in order to dodge the banks, created false/exaggerated operational revenues by generating fake sales/purchase invoices through the companies controlled by their family members. Mr. V. Satish Kumar and Mrs. V Hima Bindu siphoned off a part of proceeds of crime by remitting it to the overseas entities controlled by their family members" ED further stated.
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