Hyderabad Bar Owner Gets 5 Year Jail in Money Laundering and Bank Loan Fraud Case
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The Enforcement Directorate (ED) in Hyderabad has convicted and individual in a money laundering case involving fake bank loans taken using impersonation and forged documents.
On Wednesday, the MSJ Court in Nampally sentenced L. Srinivas Goud, the owner of Mallika Inn Bar & Restaurant, to five years of rigorous imprisonment under the Prevention of Money Laundering Act (PMLA). The court also imposed a fine of ₹25,000 each on Goud and his company.
ED officials said that Goud took a loan from Federal Bank by creating fake property documents in his mother’s name. He also used another person to impersonate her. The loan, shown as a housing and renovation loan, was actually used for other purposes. This caused a loss of ₹44.8 lakh to the bank.
As per Bank and Government guidelines, borrowers can’t divert loans for other purposes. This means that if a loan has been taken for renovation of home then the loan should be utilised for that purpose only.
During the trial, Goud avoided court hearings many times, which led to several non-bailable warrants. After weeks of tracking him, the ED arrested him in October. His bail requests were rejected, and he stayed in judicial custody until the court announced the conviction.
