SREI loan case: ED searches AMR-linked premises in Hyd
The searches, conducted under the Prevention of Money Laundering Act (PMLA), 2002, were carried out in Kolkata, Chennai, Bengaluru and Hyderabad at premises linked to promoters, directors, family members and associated entities of Odisha-based ARSS Group.
Agency sources said the Hyderabad operation was being carried out by officials of the Kolkata unit as part of the multi-city searches. A Mahesh Reddy and his family are promoters of the company, according to company details. The operation also covered premises linked to AMR Group. In Hyderabad, ED officials searched premises in Kamalapuri Colony, where AMR India has its registered office. AMR India is engaged in mine development and operation, contract mining, irrigation projects, roads, civil construction and industrial infrastructure.
Hyderabad: The Enforcement Directorate ’s Kolkata unit on Friday searched premises linked to AMR India, promoted by Hyderabad-based industrialist A Mahesh Reddy and his family, as part of a money-laundering investigation into alleged irregular loans obtained from SREI group companies and their subsequent non-repayment.
SREI subsequently found that representations made by ARSS Infrastructure Projects in a deed of assignment were misleading or false, according to the proceedings. The investigation relates to alleged fraudulent or irregular loans obtained from SREI Infrastructure Finance and SREI Equipment Finance (SEFL), and their subsequent non-repayment. The ED is examining suspected evergreening of loans, diversion of funds and round-tripping as part of the probe. The receivables assigned to SREI were allegedly already encumbered, with a charge existing in favour of SBI. The ED searches are part of its investigation into the loan transactions and the subsequent movement and utilisation of funds. The agency is examining the role of the entities and persons linked to the transactions under the provisions of the PMLA.