ED attaches assets worth Rs 31 crore of Zylog Systems under PMLA

Enforcement Directorate (ED) on Monday attached immovable and movable properties worth Rs 31 crore under the Prevention of Money Laundering Act, 2002 (PMLA) in a bank fraud case relating to M/s. Zylog Systems Limited and other firms. Based on a FIR filed by the CBI, ED had initiated an investigation under the provisions of PMLA against M/s. Zylog Systems Ltd., Sudarshan Venkatraman, the then Chairman and Chief Executive Officer of M/s. Zylog Systems Ltd., Ramanujam Sesharathnam, the then managing director and chief operating officer of M/s. Zylog Systems Ltd., and others.

FIR was lodged based on a complaint received from Dena Bank saying these persons floated fictitious shell companies including M/s. Woodbridge Technologies Pvt. Ltd., M/s. Effica Systems Pvt. Ltd. and M/s Aditicon Services Ltd and that they made the employees of M/s. Zylog Systems Ltd. as directors of the said companies; that the fictitious invoices towards the purchase of software/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 has defaulted in repayment.

Investigations under the provisions of PMLA 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 Crores.

Investigations under PMLA so far have resulted into an identification of one building, 5 flats and Fixed Deposit of Rs 1 crore involved in money laundering. The said immovable and movable properties valued at around Rs 31 crores have been attached under PMLA. Further investigations to identify the "proceeds of crime" are in progress. 

(With inputs from agencies.)