Go Rural India diverted advertisement money for repaying loans, buying jewellery
Hyderabad:The Enforcement Directorate (ED), Hyderabad, on Friday attached Rs 6.47-crore worth immovable properties of Go Rural India under the Prevention of Money Laundering Act (PMLA), 2002 for misappropriating the funds of the TGSRTC.
The agency investigated the case against Go Rural India Pvt. Ltd (GRIPL) and its directors based on a complaint lodged by Secunderabad and Hyderabad regions of the Telangana Road Transport Corporation (TGSRTC) for defaulting on `21.72-crore due to the corporation for the display of advertisements on buses.
During the investigation, it was revealed that as per the contract, Go Rural India had to pay the contractual amount.
However, upon execution of the contract, the promoters of Go Rural India displayed advertisements not only through the designated entity but also through other companies like GRIPL, Poster Town India, Go Transit Media and Lime Lite Advertising, which were managed and controlled by them and were not authorised to conduct the business of display of advertisement, according to the ED.
The investigation revealed that the accused collected substantial amounts of money from clients in their bank accounts in contravention of the terms and conditions of the contracts and diverted the funds earned through display of advertisements.
Instead of paying the outstanding amounts to TGSRTC, the accused utilised the funds earned from display of advertisements for various other purposes such as repayment of loans, purchase of jewellery, vehicles, immovable properties and other personal expenses.
This diversion of funds led to default in payment of dues to TGSRTC and defrauded the corporation to the tune of `21.72 crore.
