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ED arrested PIS MD for causing loss of ₹3,316 Cr to PSBs
By IndianMandarins- 20 Aug 2021
2043New Delhi (20.08.2021): For causing a loss of ₹3,316 crores to a consortium of public sector banks, the Enforcement Directorate has arrested Vuppalapati Satish Kumar, Managing Director of Prithvi Information Solutions Limited (PIS), an NSE-listed company, under the Prevention of Money Laundering Act, 2002, The arrest took place on August 12 as the PIS MD was non-cooperative during the investigation. He was produced before the PMLA Special Court. The High Court granted 10 days custody to ED. Reportedly, Satish Kumar allegedly laundered money in connivance with his sister B Hima Bindu, MD of VMC Systems Ltd. Earlier, V Hima Bindu was arrested under PMLA and was in ED custody till August 18. The ED had initiated an investigation on the basis of an FIR filed by the CBI against VMC Systems, which had taken loans from a consortium of banks. The total outstanding is worth ₹3,316 crores, according to an ED statement. A forensic audit revealed that VMC Systems circulated loans to various related entities to inflate its books of accounts and had opened various Letters of Credit worth ₹692 crores in the name of fake/dummy entities, which were subsequently devolved. The ED said in a statement that Satish Kumar, through his company Prithvi Information and Ennar Energy Ltd, and with the active assistance of Hima Bindu, in order to dodge the banks, created false/exaggerated operational revenues by generating fake sales/purchase invoices through the companies controlled by their family members. The statement pointed out that both had siphoned off a part of the proceeds of crime by remitting it to the overseas entities controlled by their family members. Although Satish Kumar claimed that he had no link with the NPA of VMC Systems, forensic examinations of digital devices (more than 40 hard disks of VMC Systems were recovered from his residence during the search carried out by ED on July 20, 2021) revealed that he indulged in Benami transactions and was involved in efforts to transfer fraud amounts to off-shore entities, the statement said.
ED arrested PIS MD for causing loss of ₹3,316 Cr to PSBs
By IndianMandarins - 2021-08-20 13:14:00
New Delhi (20.08.2021): For causing a loss of ₹3,316 crores to a consortium of public sector banks, the Enforcement Directorate has arrested Vuppalapati Satish Kumar, Managing Director of Prithvi Information Solutions Limited (PIS), an NSE-listed company, under the Prevention of Money Laundering Act, 2002,
The arrest took place on August 12 as the PIS MD was non-cooperative during the investigation. He was produced before the PMLA Special Court. The High Court granted 10 days custody to ED.
Reportedly, Satish Kumar allegedly laundered money in connivance with his sister B Hima Bindu, MD of VMC Systems Ltd.
Earlier, V Hima Bindu was arrested under PMLA and was in ED custody till August 18.
The ED had initiated an investigation on the basis of an FIR filed by the CBI against VMC Systems, which had taken loans from a consortium of banks. The total outstanding is worth ₹3,316 crores, according to an ED statement.
A forensic audit revealed that VMC Systems circulated loans to various related entities to inflate its books of accounts and had opened various Letters of Credit worth ₹692 crores in the name of fake/dummy entities, which were subsequently devolved.
The ED said in a statement that Satish Kumar, through his company Prithvi Information and Ennar Energy Ltd, and with the active assistance of Hima Bindu, in order to dodge the banks, created false/exaggerated operational revenues by generating fake sales/purchase invoices through the companies controlled by their family members.
The statement pointed out that both had siphoned off a part of the proceeds of crime by remitting it to the overseas entities controlled by their family members.
Although Satish Kumar claimed that he had no link with the NPA of VMC Systems, forensic examinations of digital devices (more than 40 hard disks of VMC Systems were recovered from his residence during the search carried out by ED on July 20, 2021) revealed that he indulged in Benami transactions and was involved in efforts to transfer fraud amounts to off-shore entities, the statement said.
