ED Attaches Assets Worth Rs 243 Crore of Amanath Co-operative Bank Ltd

The Enforcement Directorate (ED) has provisionally attached assets worth Rs. 243.93 crore belonging to Mohamed Asadulla, A. Shafiulla, and their relatives in a bank fraud case involving Amanath Co-operative Bank Ltd, Bengaluru, under the Prevention of Money Laundering Act (PMLA), 2002.

On the basis of an FIR registered by the Commercial State Police Station in Bengaluru and a Chargesheet dated 05.05.2006 filed by the CID in Bengaluru, the ED initiated a money-laundering investigation against Mohamed Asadulla (Ex-General Manager of Amanath Co-operative Bank, Bengaluru), A. Shafiulla (Ex-Branch Manager of Amanath Co-operative Bank, NR Road, Bengaluru), and K. Hidayathul

The ED investigation revealed that the above-mentioned individuals opened 50 fictitious Overdraft accounts in the names of themselves, their relatives, and their entities from 1997 to 2002 in order to misappropriate the bank’s funds. Furthermore, the accused persons opened another 8 Real Estate Accounts and 165 housing loan accounts to adjust the outstanding amount of the said 50 fictitious accounts, and as a result, the accused persons were able to close 40 of the 50 fictitious accounts. According to the information provided by the bank, the said 8 Real Estate Accounts, 165 Housing Loan Accounts, and previously opened 10 Overdraft accounts (out of 50 fictitious accounts) are still outstanding, and the total loan proceeds of these accounts were Rs. 79.30 Crore at the time the said accounts were declared NPA (total of both principal and interest). The illegally obtained loan proceeds from the said accounts were used to purchase various immovable properties in the names of the said persons and their relatives. The proceeds of crime generated by opening the fictitious accounts were used to purchase land and property. Properties totaling 8 acres at NS Palya, BegurHobli, Bannerghatta Road, Bengaluru, held in the names of Mohamed Asadulla, A. Shafiulla, and their relatives and valued at Rs. 243.93 crore have been provisionally attached under the provisions of the PMLA.

Further investigation is in progress.