The Enforcement Directorate on Friday provisionally attached assets worth Rs. 10.7 crore of a Tamil Nadu-based company in connection with an alleged Rs. 50-crore cheating case. “The assets of ARI Fabrics Private Ltd, which is based in Dindigul district, have been attached under the Prevention of Money Laundering Act,” said an ED official.
According to the agency, G. Srinivasan of Pamba Spinning Mill Private Ltd had allegedly cheated Global Trade Finance Ltd of Rs.50 crore by furnishing fabricated collateral securities and by availing bill discounting in the name of fictitious firms. The funds were used for purchasing various properties, it is alleged.
Investigations revealed that a part of the proceeds had also been used to acquire ARI Fabrics. “Accordingly, the properties valued at Rs. 10.7 crore have been provisionally attached,” said the official.
Earlier, properties of the associated companies — VMT Spinning Mills, Pamba Spinning Mills, JKK Paper Mills, Sri Sakthi Iswarya Spinning Mills and Paranthaman Spinning & Weaving Mills Ltd — worth Rs. 17 crore were attached, according to the ED.
