The Enforcement Directorate (ED) Monday filed a chargesheet in opposition to AGS Infotech Personal Restricted and its director G Dhananjaya Reddy earlier than the Court docket of the Principal Metropolis Civil and Session Choose Particular Court docket, Bangalore, underneath Prevention of Cash Laundering Act (PMLA) pertaining to a financial institution fraud to the tune of Rs 23.73 crore. The court docket has taken cognizance of the prosecution criticism filed by the ED.
The ED initiated the probe into the cash laundering case on the premise of a legal case registered by CBI’s Financial institution Securities & Fraud Cell, Bangalore, in opposition to the Director of AGS Infotech Ltd, Bengaluru, and others for dishonest the United Financial institution of India to the tune of Rs 23.73 crore in 2012 regarding the sanctioning and availing of credit score services within the identify of AGS infotech Ltd.
Throughout investigation it was revealed that Reddy and different accused individuals cheated United Financial institution of India and took a mortgage of Rs 23.73 crore by creating collateral safety on the premise of fabricated paperwork, and diverted the mortgage proceeds for the needs aside from for which it was sanctioned.
Based on ED, Reddy is a ordinary offender and the mastermind behind two different financial institution frauds dedicated by means of two of his different corporations – Nexxoft Infotel Ltd and Ignis Know-how Options Pvt. Ltd.
The ED had arrested Reddy earlier in a cash laundering case involving Rs 7.58 crore and launched separate prosecution underneath PMLA, 2002 in opposition to him by the central company.