ED attaches Maharashtra-based steel company's assets worth over Rs 517 cr

The Enforcement Directorate (ED) on Wednesday said it has attached a Maharashtra-based steel company's assets worth more than Rs 517 crore under the anti-money laundering law in connection with an alleged bank loan fraud of over Rs 895 crore.

The assets, including land, building and machinery, belong to SKS Ispat and Power Limited, the ED said in a statement.

A provisional order for attaching these assets has been issued under the Prevention of Money Laundering Act (PMLA) and their total value is Rs 517.81 crore.

The investigation pertains to a money laundering case based on a Central Bureau of Investigation (CBI) FIR against Tiruchirappalli-based boiler manufacturing company Cethar Limited that "availed" credit facilities of Rs 895.45 crore from a consortium of lenders led by the Indian Bank, SAM branch in Madurai.

The ED said accounts of Cethar Limited turned NPA (non-performing asset) on December 31, 2012 and subsequently proceedings under the Insolvency and Bankruptcy Code (IBC