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Earlier this month, the Enforcement Directorate (ED) announced that it has seized assets valued at over Rs 30 crore belonging to the promoter of a Kerala-based real estate group and entities associated with him. The action is part of an ongoing money-laundering investigation linked to an alleged bank loan fraud case.
The ED revealed that a total of 62 immovable properties, owned by Heera Construction Company Private Limited, its managing director Abdul Rasheed, his trust Hera Educational and Charitable Trust, and sister company Heera Summer Holiday Homes Private Limited, have been attached under the provisions of the Prevention of Money Laundering Act (PMLA). The total estimated worth of these properties is Rs 30.28 crore, according to the official statement released by the central agency.
The investigation centers around accusations that Heera Constructions Company Private Limited, Abdul Rasheed, and other involved parties deceived the State Bank of India's Kowdiar branch in Thiruvananthapuram through fraudulent activities. The ED alleges that they unlawfully sold primary and collateral securities mortgaged with the bank and defaulted on loan repayments, leading to losses for the bank.
The Enforcement Directorate contends that the accused generated "proceeds of crime" amounting to Rs 34.82 crore through these illicit activities. Abdul Rasheed, the managing director, had been apprehended by the ED in December of the preceding year and is presently in judicial custody.
The ED further asserted that Rasheed engaged in money laundering by diverting funds obtained from selling other projects mortgaged with the State Bank of India, instead of utilizing them for the repayment of loans as intended. This money-laundering case originated from an FIR filed by the Central Bureau of Investigation (CBI) in Kochi, initiated based on a complaint lodged by the bank.
The unfolding investigation serves as a stark reminder of the persistent challenges posed by financial fraud and money laundering within the real estate sector.
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