The Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs 43.25 crore belonging to Hyderabad-based Sheetal Refineries Limited and its promoter and MD Jitender Kumar Agarwal under Prevention of Money Laundering Act (PMLA) for defrauding State Bank of Hyderabad and Punjab National Bank in a bank fraud case.

The ED had initiated money laundering investigation on the basis of an FIR registered by Bank Securities and Fraud Cell, Bengaluru for causing a total loss of Rs 87 crore, the ED said in a statement.

“The ED investigation revealed that the accused promoters availed various credit facilities from SBH and PNB Hyderabad, by submitting fabricated financial statements, invoices, etc. They got Letters of Credit (LCs) issued from lending Banks in the name of related shell entities as if material is being purchased.,” it said

Letters of Credit were discounted by the related entities and the money so received was routed back to the promoters of Sheetal Refinery.

The company defaulted in payment of LCs on due date and LCs devolvement caused loss to the banks. Sheetal Refineries owe Rs 146 crore to the banks.

The diverted loan proceeds which are nothing but proceeds of crime were utilized for purchase of properties and to foreclose older loans and were not used for the stated purposes, it said.

In this case, the ED had earlier attached six immovable properties of registered value of Rs 8.30 crore and five movable assets worth Rs 1.23 crore.

Now, the ED has attached 15 more assets. The purchase value of these assets is Rs 43.25 crore. With the present attachment of 15 more properties located in Telangana, the total attachment in this case is Rs 52.78 crore.