ED Restores Rs. 30.71 Crore in Seized Assets to SBI in Sheetal Refineries Money Laundering Case
(Judicial Quest News Network)
The Directorate of Enforcement (ED), Hyderabad Zonal Office, has successfully completed the restitution of assets worth Rs. 30.71 Crore to the State Bank of India (SBI) in connection with an ongoing money laundering investigation against M/s Sheetal Refineries Limited (SRL) and others.
Following ED’s actions, SBI filed a restitution application under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA) of the Hon’ble Metropolitan Sessions Judge, Hyderabad, seeking the release of immovable properties seized by the ED. On February 7, 2025, the court approved the petition, ordering the release of assets worth Rs. 30.71 Crore in favor of SBI, the rightful claimant.
The case involves SRL, which had availed fraudulent credit facilities from several banks, including SBI and PNB, leading to non-performing assets. The company utilized 21 fraudulent Letters of Credit, based on forged invoices, to siphon off funds into its own accounts and those of its promoters and family members. These illicit funds were used to invest in various immovable properties, ultimately causing a significant financial loss of Rs. 136.28 Crore to SBI and Rs. 53.82 Crore to PNB.
As part of the ongoing investigation, ED had previously attached assets worth Rs. 52.77 Crore through Provisional Attachment Orders issued in 2016 and 2022. This recent court order is a significant step in ED’s continued efforts to return the proceeds of crime to the rightful claimants and hold wrongdoers accountable for financial misconduct.
ED’s initiative underscores its commitment to safeguarding public interest and ensuring the recovery of assets from illicit activities.
