The Enforcement Directorate has seized gold and diamond jewellery worth ₹4.43 crore during searches conducted under the Prevention of Money-Laundering Act (PMLA), 2002 at the residence of K. Subbaraj, chairman of M/s. Cethar Limited; K. Pothiraj, its managing director; and N.S.K. Kalairaja, director of M/s NSK Builders Private Limited, Tiruchi.
The agency initiated investigation under PMLA on the basis of FIR registered by the Central Bureau of Investigation, BS & FC, Bengaluru, against M/s Cethar Limited, Tiruchi and others for availing credit facilities to the tune of ₹1,340 crore and systemically committing fraud and cheating the Indian Bank and other banks.
Investigation by the ED revealed that a huge part of the loan amount sanctioned by the Indian Bank and the consortium of banks was siphoned off and diverted by M/s Cethar Limited, its chairman and its managing director to their subsidiaries, family members and various companies as bad debts.
It also revealed that substantial part of the loan money was transferred to M/s N.S.K. Builders Private Limited in the guise of constructions.
During the course of search, gold and diamond jewellery worth ₹1.77 crore along with several property documents were seized from the residence of K. Subbaraj and certain property documents, incriminating evidences and digital evidences were also seized from the other premises. Further, gold and diamond jewellery worth ₹2.3 crore belonging to K. Subbaraj and ₹35 lakh belonging to K. Pothiraj from six bank lockers have been seized. Further investigation was in progress, a press release from the Enforcement Directorate said.
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