The Enforcement Directorate on Saturday exposed massive money laundering and other financial irregularities to the extent of Rs 5,700 crore allegedly committed by Y S Chowdary alias Sujana Chowdary, former Union minister and Rajya Sabha member of Telugu Desam Party.
ED authorities conducted a series of raids in the last two days on eight locations, including seven in Hyderabad and one in Delhi, belonging to of Sujana group of companies promoted by Sujana Chowdary.
The searches had revealed that the group companies had defrauded banks to the tune of more than Rs 5700 crores.
The ED, in an official release said, documents recovered during the searches revealed that various cases were pending against the group companies under Foreign Exchange Management Act, Directorate of Revenue Intelligence and Central Bureau of Investigation.
The officials seized various documents pertaining to foreign exchange transactions.
They revealed that Sujana Chowdary’s group was controlling over 120 companies and most of them were just shell companies, which are either non-operating or fake companies that existed on paper only without any genuine business activities.
The ED statement also said certain loans to group companies were sanctioned against the personal guarantee of Sujana Chowdary.
The ED authorities also seized from his residential premises, six high-end cars, including those of Ferari, Range Rover, Mercedes Benz, which were registered in the name of dummy companies.
The ED authorities summoned Chowdhary to appear before them on November 27 for further investigations.
The ED pointed out that the CBI had had registered three cases based on complaints from three banks stating that one company -- Best & Crompton Engineering Projects Ltd, Chennai (BCEPL) had obtained loans from them by falsification of accounts and submission of false statements, causing them a cumulative loss of Rs 364 crore, including Rs 133 crore to Central Bank of India, Rs 71 crore to Andhra Bank amd Rs 159 crore to Corporation Bank.
The company turned out to be belonging to Sujana Chowdary.
