New Delhi, Oct 9 (UNI) The Bengaluru Zonal Office of the Enforcement Directorate (ED) has provisionally attached an immovable property valued at Rs 42.45 lakh belonging to Saravana Prasad.
This action is part of an investigation into fraudulent accounting practices by Innovative Studios Private Limited.
The ED initiated its investigation under the Prevention of Money Laundering Act (PMLA) based on a prosecution complaint filed by the Registrar of Companies (ROC), Bangalore, before the Special Court for Economic Offences in Bengaluru.
Investigations revealed that during the financial year 2015-16, Innovative Studios Pvt. Ltd. fraudulently declared expenditures totaling Rs. 1.49 crore in the names of Amogha Enterprises and Milae Technocraft LLP.
Of this amount, approximately Rs. 1.02 crore was shown as paid in cash for fictitious expenses, thereby generating proceeds of crime (POC) of Rs. 1.02 crore.
The ED found that Saravana Prasad, the Managing Director of the company at the time, was the key decision-maker responsible for these fraudulent transactions.
He allegedly instructed that payments be made in cash in denominations below Rs 20,000 per voucher to avoid raising audit red flags. The company failed to produce any supporting documentation, such as signed vouchers, bills, or proof of work execution.
Statements recorded from other directors and the statutory auditor further confirmed that the transactions were fictitious and carried out under Prasad’s instruction and supervision.
Since the cash generated from the crime could not be traced, and it was established that Prasad was the key decision-maker and ultimate beneficiary, the ED identified an immovable property in his name as equivalent value to the POC.
The property—Flat No. MIG 22/129, Domlur II Stage, Bengaluru, measuring approximately 1,114.5 sq.ft., and purchased in 2020 for Rs. 42.45 lakh—has been provisionally attached under Section 5(1) of the PMLA, 2002. Further investigation is in progress.