AVASARALA VENKATESHWARA RAO Vs. DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) Seeking the Court to enlarge the petitioner who is arrayed as accused No.1 in PMLA.SC.No.240 of 2022 that is pending before the Metropolitan Sessions Judge-cumSpecial Court under the Prevention of Money Laundering Act, Hyderabad, the present Criminal Petition is filed.

(2.) Heard the submission Sri T.Niranjan Reddy, learned senior counsel appearing for Sri T.Anirudh Reddy, learned counsel on record for the petitioner, as well as the learned Standing counsel for Enforcement Directorate.

(3.) The matrix of the prosecution case if narrated in a narrower compass is that Ms Servomax India Private Limited fraudulently availed credit facility of Rs.402.00 crores from banks on the basis of bogus bills/invoices and subsequently, discounted that amount in the group companies like M/s Murali Krishna Power Controls Private Limited, M/s Neutrino Power Systems Private Limited, M/s Akhila Power Products Private Limited, etc and thereafter, transferred the said loan amount back to M/s Servomax India Private Limited directly or indirectly on the basis of dummy bills. On suspicion, the erstwhile State Bank of Hyderabad engaged a forensic auditor i.e., M/s Deloitte to conduct forensic audit. It was found that M/s Servomax India Private Limited fudged its debtors list with inflated receivables from non-existing entities or related parties or companies floated by its own employees to avail loan facility fraudulently. Both sales and purchase transactions were made with companies floated by the employees as shareholders/directors. Funds were diverted without actual trade/sales. Thus, M/s Servomax India Private Limited used the LC facilities through the said companies and thereby, involved in diverting/siphoning of funds.