
The Directorate of Enforcement (ED), Hyderabad zonal office, has attached immovable properties valued at Rs 3.11 crore belonging to Sagiraju Suryanarayana Raju, managing director of Saisree Engineers. This action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following allegations of fraudulent activities involving the State Bank of India (erstwhile State Bank of Hyderabad), where fake title deeds were allegedly used as security for bank finance.
Initiation of Investigation by ED
The ED launched an investigation based on an FIR filed by the CBI, Economic Offences Wing (EOW), Chennai, under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. The complaint alleged misconduct by Saisree Engineers, its promoters/directors, and others related to financial irregularities.
Allegations and Criminal Conspiracy
According to the FIR, Saisree Engineers and its management allegedly orchestrated a criminal conspiracy to defraud SBI by submitting fabricated documents and fictitious properties as collateral to secure credit facilities amounting to Rs. 15 crore. Subsequently, the CBI, EOW, Chennai, filed a chargesheet dated 21 December 2020 against Saisree Engineers and its directors after concluding their investigation.
Findings of ED’s Investigation
During its probe, the ED discovered that M/s SEPL, represented by its directors, had obtained credit facilities of Rs. 15 crore from SBI, pledging non-agricultural land under the Visakhapatnam Urban Development Authority as collateral. However, investigations revealed that the described property was fictitious and had been mortgaged using falsified documents.
Diversion of Funds and Further Actions
The investigation under PMLA further uncovered that funds disbursed into M/s SEPL’s cash credit account were fraudulently transferred to Sagiraju Suryanarayana Raju’s personal account at Andhra Bank. Additionally, instead of being deposited into SEPL’s SBI loan account, receivables totaling Rs. 13.53 crore from a vendor were diverted to another bank account of SEPL held at Andhra Bank, purportedly for business purposes.
Something fishy. Without proper verification banks don’t give loan.