The Enforcement Directorate (ED) has attached immovable and movable properties totalling Rs 31 crore of publicly-listed IT company Zylog Systems and others under the Prevention of Money Laundering Act, 2002 (PMLA) in a bank fraud case. The assets include one building, five flats and fixed deposit of Rs 1 crore, said a press release issued by the ED, Chennai.
The ED initiated investigation under the provisions of PMLA on the basis of the FIR of CBI against Zylog Systems, Sudarshan Venkatraman, the then chairman & CEO, Ramanujam Sesharathnam, the then MD & COO, and others. The CBI’s FIR was based on the compliant received from Dena Bank, Chennai T Nagar branch, complaining that these persons floated fictitious shell companies namely Woodbridge Technologies, Effica Systems and Aditicon Services, and that they made the employees of Zylog Systems directors of the said companies.
Fictitious invoices towards purchase of software and hardware were created in the name of these companies and were used to avail the loan of Rs 100 crore from Dena Bank and the same was defaulted in repayment.
According to the ED release, the investigations revealed that the said firms had also defaulted bank loans availed from Andhra Bank and Union Bank of India, Chennai collectively to the tune of Rs 110 crore.
Investigations so far have resulted into identification of one building, five flats and fixed deposit of Rs 1 crore, involved in money laundering. The said immovable and movable properties valued at around `31 crore have been attached under PMLA, it said, adding that further investigations to identify the proceeds of crime were in progress.