Justice K Surender of the Telangana High Court granted bail to one of the accused in a money laundering case. Khagesh Kachhwal is the petitioner and accused in a case registered by the Enforcement Directorate, Hyderabad in connection with Rs 73 crore bogus letter of credit (LC) fraud. The public prosecutor argued that the petitioner was acting as entry operator and facilitating large-scale bogus LC discounting and providing large accommodation entries to assist money laundering activities of those involved in bank frauds. 

He further stated that the ED initiated money laundering investigation on the basis of an FIR registered by CBI, Chennai, against RE Cables & Conductors Private Ltd (RECC) and others for alleged misappropriation of SBI funds and causing wrongful loss to the tune of Rs 74.8 crore.
Investigation by the ED has revealed that Khagesh Kachhwal and Varanasi Dileep are one of the biggest entry providers in

Hyderabad under whose assistance and guidance, RECC had fraudulently mis-utilized the credit facilities availed from banks. 

Their modus operandi was that the RECC would open various LCs in the name of shell entities controlled by them under the guise of short-term advances with the help of bogus documents. No goods/materials are supplied against such LCs. Subsequently, the LCs were discounted with a known bank and the amount received by discounting is diverted back to RECC so that it can tide over its cash flow crunch. 

Both the accused Khagesh Kachhwal and Varanasi Dileep were arrested and produced before the special PMLA court on June 26. The counsel for the petitioner contended that the no offence is attracted against the petitioner and he will abide any condition imposed by the court. The court after hearing both sides granted the bail and disposed the case.

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