Private firm director grilled for getting bank loan through fraudulent means

NT Correspondent

Bengaluru: A case has been registered against AGS Infotech Private Limited and its director G. Dhananjaya Reddy for allegedly obtaining loans by submitting fake documents to a bank in the city.

As per a circular issued by the Directorate of Enforcement (ED) on Monday, a prosecution complaint has been filed against the firm and its director before the Principal City Civil and Session Judge Special Court in Bengaluru under the Prevention of Money Laundering Act (PMLA) 2002, in the matter of bank fraud to the tune of Rs 23.73 crore committed by the company and its directors.

ED initiated a money laundering investigation on the basis of a criminal case registered by CBI, BS & FC, in the city against the director AGS Infotech Ltd and others for cheating the United Bank of India to the tune of Rs 23.73 crore, by fraudulent means in the matter of sanctioning and availing of credit facilities in the name of AGS infotech Ltd.

An investigation by the ED revealed that G Dhananjaya Reddy and other accused persons cheated the then United Bank of India and availed loan by creating collateral security on the basis of fabricated documents and allegedly diverted the loan proceeds for purposes other than those for which they were sanctioned, and thus committed the offence of money laundering, the ED said in its circular.

Further, it mentioned that Reddy is a habitual offender and is the mastermind behind two other bank frauds committed through his two other companies, namely Nexxoft Infotel Ltd and Ignis Technology Solutions Private Limited.

He was also arrested by ED earlier on separate prosecution under PMLA, after attaching properties involved in money laundering worth Rs 7.58 crore in other two PMLA cases recorded by ED.