Money laundering case against two Chennai firms: ED restores properties worth Rs 25 crore to Indian Bank

CHENNAI: The Enforcement Directorate (ED) restituted properties worth Rs 25 crore to Indian Bank in connection with a money laundering case it was probing against two Chennai-based firms which cheated the bank with forged documents.
The properties, which belonged to Nafisa Overseas and Safa Leathers, were provisionally attached by the ED in 2020 as part of its investigation. The investigation agency took possession of the properties in 2021.
The ED registered a case against the two firms based on a CBI first information report that the two firms cheated the bank to the tune of Rs 23.46 crore. The firms availed loans from the bank and submitted forged documents of stocks, movable and immovable properties as securities. They produced exaggerated turnovers and stock statements to avail further credit limits.
The restitution of the properties comes in the wake of the ED filing the prosecution complaint against the firms. The court hearing the case has taken cognisance of the same.