Enforcement of Directorate (ED) has issued order under the provisions of the Prevention of Money Laundering Act, 2002, (PMLA) attaching assets totaling to Rs 1.30 crores in a case related to siphoning off the funds of Karnataka State Handicraft Development Corporation Limited (KSHDCL).
The attached immovable assets are in the form of land & building which are in the name of B Y Srinivas, former Senior Manager, Vijaya Bank, Bengaluru and movable assets in the form of balance lying in bank accounts in the name of H S Nagalingaswamy, B Y Srinivas, Ashwin Tours & Travels and M/s. PNP Enterprises, according to a release here on Thursday.
Investigation under the provisions of the PMLA was initiated on the basis of an FIR registered at Ashoknagar Police Station, Bengaluru City against G C Kishor Kumar, General Manager, KSHDCL and others for “siphoning off the funds of KSHDCL”, a State Govt.of Karnataka undertaking.
ED attaches land, building and balances in bank accounts totaling to ₹1.30 crores belonging to B.Y. Srinivas, former Senior Manager, Vijaya Bank & others in a case related to siphoning off the funds of Karnataka State Handicraft Development Corporation Limited.— ED (@dir_ed) November 12, 2020
Investigation under PMLA revealed that Nagalingaswamy and his associates generated proceeds of crime to the extent of Rs 16.67 crores between 17.12.2016 to 17.10.2018 by “transferring” to a fake bank account with State Bank of India, Bangalore City Branch, in the name of “Managing Director, KSHDCL”, by using forged documents. Investigation also revealed that the amounts were moved out of the bank accounts of KSHDCL with Vijay Bank to the fraudulent bank account held with SBI. The amount was further diverted into the bank accounts of certain entities viz. M/s Fralk Infotainment, M/s PNP Enterprises and bank account in the name of one D Narasaiah and from where the same was withdrawn and utilized by the said H.S.Nagalingaswamy and their associates for their benefits.
Further investigation is in progress. (Agency)