ED arrests VMC systems Ltd MD over alleged fraud of Rs 1700cr
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The Enforcement Directorate on Thursday arrested Hyderabad-based telecom equipment manufacturer VMC Systems Ltd's Managing Director Vuppalapati Hima Bindu under the Prevention of Money Laundering Act (PMLA). Bindu has been arrested in connection with a bank fraud case of Rs 1700 crores.
The ED case is based on the FIR registered by the CBI against the company and its directors on the complaint of the Punjab National Bank in 2018.
The PNB alleged that the company had defaulted on repayment of loans worth Rs 1700 crores to a consortium of banks. While Rs 539 crores are due to PNB, 1207 crores are pending to the State Bank of India, the Corporation Bank, the Andhra Bank, and the JM Financial Assets Reconstruction Company.
The VMC systems had availed working capital credit facilities on August 12, 2009, to the tune of Rs 1,010.50 crore, said the CBI.