The Enforcement Directorate has arrested Hittesh Patel and Suresh N. Patel, directors of Shinago Plantations Private Limited, for allegedly laundering ₹325 crore through a network of about 20 group entities located across Tamil Nadu.
The agency has taken their 10-day remand for questioning under the Prevention of Money Laundering Act.
According to the agency, the accused —in collusion with the valuers — availed themselves of loans from the erstwhile Corporation Bank (presently Union Bank of India), on the basis of inflated value of the properties offered as collateral.
They indulged in wilful diversion through various group accounts. The funds raised via letter of credit, cash credit limits and agriculture term loans were circulated within the group entities to show more business and get additional credit facilities, it is alleged.
