VGN multi-storied residential building worth Rs 115 cr attached by Enforcement Directorate

CHENNAI:

A multi-storied residential building worth Rs 115 crore belonging to real estate developer VGN Developers was attached by Enforcement Directorate under Prevention of Money Laundering Act for buying a public sector enterprise land below the guideline value.

Enforcement Directorate Joint Director KSVV Prasad said that the immovable property in the form of land to the extent of 10.46 acres at Thiru-Vi-Ka Industrial Estate in Guindy was purchased by VGN Developers in 2013 from Hindusthan Teleprinters, a Government of India Undertaking.

In 2009, State Bank of India had initiated proceedings under Sarfaesi Act for sale of the land after HTL agreed to sell the land to pay of the company’s debt.

The land was sold on March 15, 2013 by way of private treaty for an amount of Rs 272 crore. Leon Terattil, then deputy general manager of Stressed Assets Management Branch, State Bank of India along with then SBI chief manager Ramadoss along with DP Gupta, chief operating officer of Hindustan Teleprinters, deliberately resorted to private treaty instead of public auction for disposing off the property.

“There was no sufficient time given to other interested parties and not only that no paper publications were made and the property was sold within a week after holding consortium meeting on March 7, 2013,” according to FIR filed by CBI.

The guideline value of the property in 2013 was Rs 387 crore but VGN brought it for Rs 272 crore causing wrongful loss to the Government of India to the tune of Rs 115 crore, said Prasad.

Prasad said that officers of Enforcement directorate initiated investigations under the Prevention of Money Laundering Act and identified the proceeds of crime in the form of wrongful gain derived by VGN Developers which has been integrated in the construction of multi-storied residential apartments in Guindy for sale to public in the name of VGN Fairmont.

“Since VGN Fairmont contains the proceeds of crime to the extent of Rs 115 crore, the immovable properties were attached provisionally under the provisions of PMLA,” Prasad added.