The Enforcement Directorate on Thursday said it has attached assets worth more than Rs 66 crore of a Chennai-based gold jewellery store under the anti-money laundering law in a case linked to alleged fraud with Axis Bank.
"It is alleged that Late Pallakudurai, P Sujatha, and Y P Shiravan, partners of Saravana Stores (Gold Palace) approached Axis Bank, Chennai, with a criminal intention to cheat," the ED said in a statement.
The store availed loans using "forged and fabricated" documents, it said.
"The accused overstated the inventory, used the OCC (open cash credit account that allows businesses to avail credit facility from their bank) limits to repay the loan availed from other financial institutions (banks and non-banking financial companies), and thus misappropriated and diverted the funds for which it was not sanctioned, and committed other irregularities," the ED said.
The accused firm has generated "proceeds of crime" amounting to Rs 81.66 crore out of which immovable assets worth Rs 66.93 crore have been attached after a provisional order was issued under the Prevention of Money Laundering Act (PMLA), it said.