New Delhi, Jul 29 (IANS): A special Enforcement Directorate (ED) court in Chennai has declared Sudarshan Venkatraman and Ramanujam Sesharathnam, the erstwhile promoter directors of Zylog Systems Limited, as Fugitive Economic Offenders.

The ED initiated an investigation under the provisions of the Prevention of Money Laundering Act (PMLA) based on FIRs registered by the CBI, under various sections of IPC, and Prevention of Corruption Act against the accused.

The probe reveals that proceeds of crime to the extent of Rs 186 crore had been derived by the accused by committing the scheduled offences, and out of this, proceeds of crime to the extent of Rs 58.12 crore have been taken outside the country by the duo under the guise of making remittances to their subsidiary ZSL Inc., USA, and also against the bogus invoices raised by one of the vendors of ZSL company viz ISS Inc.

The two also used the two flagship companies and several other conduits and fake companies to launder the banks' loans with the help of company officials and employees.

"Provisional attachment orders worth Rs 33 crore were issued, and subsequently, a prosecution complaint was also filed by the ED against Venkatraman and Sesharathnam and others before the court for the offense of money laundering.

"The court has declared them as Fugitive Economic Offenders for the offences under the Fugitive Economic Offenders Act," an ED official said.

Attached properties worth Rs 33 crore have also been confiscated to the Centre by Chennai court under the Fugitive Economic Offenders Act, 2018.