Bar owner gets five-year sentence for bank loan fraud in Hyderabad

The Enforcement Directorate (ED), Hyderabad officials have secured a conviction in a money laundering case involving fraudulent bank loans obtained through impersonation and forged documents.

The MSJ Court in Nampally on Wednesday, sentenced L Srinivas Goud, proprietor of Mallika Inn Bar & Restaurant, to five years of rigorous imprisonment under the Prevention of Money



Laundering Act (PMLA). The court also imposed a fine of Rs 25,000 each on Goud and his firm.

According to the ED officials, Goud fraudulently availed a loan from Federal Bank by fabricating his mother’s property documents and using an impostor to impersonate her. The loan, projected as a housing and renovation loan, was diverted for other purposes, causing a Rs 44.8 lakh loss to the bank.