Fraudulent Funds: ED Clamps Down on Velohar Infra

The Enforcement Directorate (ED) has taken decisive action in a case involving alleged misappropriation of government funds, attaching a property worth Rs 75 lakh belonging to Chennai-based Velohar Infra Private Limited. This development is part of ongoing investigations into illicit financial activities under the Prevention of Money Laundering Act (PMLA).

During the investigation, authorities discovered that Rs 3.74 crore was rerouted from the Karnataka State Handicraft Development Corporation Limited to a separate account at Allahabad Bank, Chennai. The funds were then siphoned off, allegedly by a group of conspirators that included bank officials and associates.

The ED outlined a complex scheme, involving false accounts and forged documents, that led to the unauthorized transfer of Rs 5.01 crore to fraudulent accounts. Of these funds, Rs 1 crore was directed to Velohar Infra, with only a token amount being used for legitimate purposes. The investigation continues as authorities work to trace all parties involved.

(With inputs from agencies.)