The Directorate of Enforcement, Hyderabad Zonal Office has provisionally attached properties worth ₹26.86 crore belonging to M/s Sowbhagya Ispat India Pvt. Ltd. in connection with a bank fraud case.
The measure was taken in accordance with the provisions of the Money Laundering Prevention Act of 2002. The attached property is apartments, a residential building and vacant land.
The investigation was initiated on the basis of a case registered by the Central Bureau of Investigation (CBI) against M/s Sowbhagya Ispat India Pvt. Ltd., its directors and others, for allegedly defrauding Andhra Bank, which had since merged with Union Bank of India, and causing loss to the bank.
According to the agency, the company used term loans and working capital from the bank to set up and expand the steel manufacturing unit. During the investigation, it was found that the accused allegedly obtained extended credit facilities by submitting fabricated stock statements, inflated financial records, forged documents and fake certificates.
Investigators said the loan funds were diverted and siphoned off instead of being used for sanctioned purposes. Funds were channeled through related entities and accommodation providers, creating fictitious turnover and cyclical transactions with the aim of inflating the company’s financial position.
The investigation further revealed that false and inflated statements and manipulation of accounts receivable were submitted to artificially maintain drawdowns and secure higher credit limits from the bank. Adopting these methods, the accused allegedly obtained and utilized bank loans and generated criminal proceeds of ₹46.52 crore.
The bank has so far recovered ₹15.52 crore. Of the remaining proceeds of crime of about ₹31 crore, properties worth ₹26.86 crore were identified during the investigation and attached under the provisions of the Prevention of Money Laundering Act, 2002.
Further investigation is underway in the case.
Published – 06 March 2026 19:37 IST
