New Delhi (08.03.2021): Enforcement Directorate (ED) arrests Hittesh Patel and Suresh N Patel, Directors of M/s. Shinago Plantations Pvt Ltd under Prevention of Money Laundering Act, 2002 (PMLA) for laundering money to the tune of Rs 325 Crore by using a network of nearly 20 group entities located across Tamil Nadu.

Investigation under PMLA revealed that the accused in collusion with the valuers availed loans from erstwhile Corporation Bank (Presently Union Bank of India) on the basis of inflated value of the properties offered as collateral and indulged in the wilful diversion of funds through various group accounts. The investigation further revealed that the funds so availed by various individuals/group concerns in the form of Letter of Credit (LC) and Cash Credit (CC) limits/Agriculture term loans, were transferred within the group entities through circular rotation of money to avail more funds from the Bank without any actual business.

After one day of judicial custody, the Hon’ble Special Court (PMLA) remanded both the accused of enforcement custody for 10 days on 5 March, 2021.