The Enforcement Directorate attached properties worth ₹26.86 crore linked to Sowbhagya Ispat India Pvt. Ltd. in a bank fraud investigation under the PMLA.
The company allegedly secured higher bank loans using fabricated stock statements, inflated financial records, and forged documents.
The fraud allegedly generated proceeds of crime worth ₹46.52 crore; the bank has recovered ₹15.52 crore so far.
The Directorate of Enforcement (ED) has attached properties worth ₹26.86 crore in connection with a bank fraud case involving Sowbhagya Ispat India Pvt. Ltd. (SIIPL), officials said on Friday, March 6, 2026. The action was taken by the ED’s Hyderabad Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA).
According to the agency, the attached assets include residential flats, a residential house, and several open plots of land allegedly linked to the proceeds of crime generated in the case.
The ED initiated its investigation based on an FIR registered by the Central Bureau of Investigation (CBI), BS&FB unit in Bengaluru. The case was filed under various sections of the Indian Penal Code and the Prevention of Corruption Act against SIIPL, its directors, and others for allegedly defrauding Andhra Bank, which has since merged with Union Bank of India.
Investigators found that the company had availed term loans and working capital facilities from the bank to establish and expand a steel manufacturing unit. However, the accused allegedly obtained higher credit limits by submitting fabricated stock statements, inflated financial records, and forged documents.
The probe further revealed that a portion of the loan funds was diverted and siphoned off instead of being used for the sanctioned purposes. The money was allegedly routed through related entities and accommodation entry providers, creating fictitious transactions and circular fund flows to inflate the company’s financial position.
Officials also said the accused manipulated receivables and submitted inflated stock statements to artificially maintain drawing power, allowing them to continue availing higher credit facilities from the bank.
Through these alleged fraudulent activities, the accused generated proceeds of crime amounting to ₹46.52 crore, causing significant losses to the bank. Authorities said the bank has recovered ₹15.52 crore so far.
Of the remaining ₹31 crore yet to be recovered, investigators have identified and provisionally attached properties worth ₹26.86 crore under the PMLA. The ED said further investigation in the case is ongoing.
[Inputs from IANS]
[VP]
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