HYDERABAD: The Enforcement Directorate on Thursday arrested the director of VMC Systems Limited in connection with Rs 1,700 crore Punjab National Bank loan fraud case.
The accused, identified as Vuppalapati Hima Bindu, will be produced in court.
The ED booked three directors of VMC Systems under the Prevention of Money Laundering Act (PMLA) for duping the bank.
VMC Systems is a telecom equipment manufacturing company based in Hyderabad.
Initially, the central bureau of investigation (CBI)'s FIR named VMC system directors Vuppalapati Hima Bindu, Vuppalapati Venkat Rama Rao and Bhagavatula Venkat Ramana.
The CBI alleged them of criminal conspiracy, cheating and forgery.
ED officials said, "We have established that money laundering with evidence in the investigation. The directors of the company are not cooperating. They are refusing to submit the documents related to the company. We arrested Hima Bindu and we are on the lookout for two other directors."
The company has outstanding dues of Rs 539 crore to PNB and owes Rs 1,207 crore to Corporation Bank, State Bank of India, Andhra Bank and JM Financial Assets.
VMC Systems was incorporated in February 1997 with an authorised share capital of Rs 65 crore and paid-up capital of Rs 50 crore.
The company's two directors have applied for anticipatory bail while the ED's efforts are on to arrest them.
In 2018 when the CBI had booked FIR, the company claimed that it had pending dues of Rs 262 crore from BNSL, but it was found that dues are only Rs 33 crore.
The company has asserted receivables from other private companies, but it was found to be false when the bankers verified.
