CHENNAI: The Enforcement Directorate (ED) has seized unexplained cash of around Rs 82 lakh, two luxury vehicles, laptops, pen drives, mobile phones, property documents and other incriminating material during searches on six premises in Chennai and Tirupur in connection with a suspected Rs 116.79crore Indian Overseas Bank (IOB) fraud.The searches were conducted on Sept 18 by the ED’s Chennai Zonal Office-II on residential and office premises under the Prevention of Money Laundering Act (PMLA), 2002. The money laundering probe relates to a CBI-registered bank fraud case involving PGC Corporation Ltd and its directors D Prem, Aadith D Vikram and K Kaleeswaran. The CBI case pertains to alleged cheating of IOB to the tune of approximately Rs 116.79 crore.According to the ED, PGC Corporation had availed loans from IOB, with the account being classified as an NPA (non-performing asset) in 2013 and declared fraudulent in 2020. The agency alleged that the accused had submitted falsified and manipulated financial statements for 2011-12 to fraudulently obtain enhanced credit facilities.The loan funds were allegedly diverted to personal accounts and foreign entities and subjected to round tripping, the ED said. The agency further alleged that Prem and Aadith D Vikram had created a network of domestic and foreign companies through which the loan funds had been diverted as investments. Substantial amounts remitted abroad in the guise of investments were allegedly brought back and used for local business expenses.The ED alleged that inventory valued at more than Rs 235 crore belonging to PGC Corporation was sold to related entities without actual receipt of sale proceeds after the bank had initiated loan recovery proceedings. The related entities had been subsequently permitted to close without lenders’ approval, it said.The searches revealed properties and assets held in the names of the accused persons’ spouses and relatives. New businesses were allegedly established in the names of spouses and employees, while the accused continued to manage and control their affairs, the agency said.
