Rs 30-Cr Properties Restituted To SBI In Money Laudering

Hyderabad: Directorate of Enforcement (ED), Hyderabad Zonal Office has successfully accomplished the process of restitution of properties worth Rs 30.71 crore to the State Bank of India in connection with money laundering case against Sheetal Refineries Limited & others.

Based on ED’s initiative, SBI filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002 before the Special Court (PMLA) of the Metropolitan Sessions Judge, Hyderabad for release of immoveable properties seized by the ED, Hyderabad Zonal Office. ED, Hyderabad urged the Court to release the seized amount to the rightful claimant, i.e. SBI in public interest.

The Court vide orders dated February 7, 2025 allowed the petition and ordered release of immoveable properties worth Rs30.71 crore of Messrs Sheetal Refineries Limited and its Directors.

ED has been investigating money laundering case against Sheetal Refineries Ltd (SRL) and others. SRL had availed various credit facilities from a consortium of banks, including SBI and PNB, which later turned into Non-Performing Asset. SRL has availed 21 fraudulent Letters of Credit from these banks, based on fake & forged invoices, without any actual supply of material or legitimate business transactions.

The promoters of SRL diverted the funds from the devolved Letters of Credit into SRL's bank accounts, as well as their own & family members' accounts. The proceeds of crime were partly withdrawn in cash while a significant part was also used to make investments in various immovable properties in the names of the promoters and their family members. This caused wrongful loss of Rs136.28 crore to SBI and Rs 53.82 crore to PNB.