The Enforcement Directorate (ED) on Wednesday said it has arrested of Leo Meridian Infrastructure Projects and Hotels Ltd (LMIPHL) promoter G. S. C. Raju and his associate A. V. Prasad in Hyderabad in connection with a money-laundering probe case linked to an alleged over Rs 1,700 crore bank loan fraud case.
The two accused were arrested under the Prevention of Money Laundering Act (PMLA) and have now been remanded to ED custody, the agency said in a statement.
The ED said that in the coming days it will question the chartered accountants who helped Raju in siphoning off the money.
“Investigation so far has unearthed 33 shell companies and more than forty contractors in this case,” the ED said.
The case pertains to the accused fraudulently availing loans, in connivance with others, from a consortium of banks and subsequent default of loans to the tune of Rs 1,768 crore, it said.
The ED has filed the criminal case under PMLA after studying 3 FIRs of the CBI against the accused.
(With input from agencies)