<p>The Enforcement Directorate on Saturday said it has seized cash and gold worth more than Rs 12 crore from the premises of a Hyderabad-based auditor as part of an investigation into alleged foreign exchange violation.</p>.<p>The action came after raids were undertaken on August 23 under the Foreign Exchange Management Act (FEMA) at the office of Brightcom Group Ltd., residences of its CEO M Suresh Reddy and CFO SLN Raju and the residence and office of its auditor P Murali Mohana Rao.</p>.ED attaches over Rs 5 crore assets in online betting, gambling linked money laundering case.<p>The ED probe stems from a Securities and Exchange Board of India (SEBI) investigation regarding impairment of assets worth Rs 868.30 crore by Brightcom Group through its subsidiaries abroad, the federal agency said in a statement.</p>.<p>"Incriminating documents and digital devices were seized including unaccounted cash of Rs 3.30 crore and gold jewellery and bullion worth Rs 9.30 crore from the residence of auditor, P Murali Mohana Rao (of P. Murali & Co.)."</p><p>"The residential premises of M Suresh Reddy were sealed," it said.</p>.<p>The probe found that Brightcom Group financed preferential issues by "round-tripping" funds through subsidiaries and conduit entities and that it falsely claimed to have received full payment for preferential shares/warrants by providing "forged and fabricated bank statements" to the SEBI.</p>.<p>"It was found that more than Rs 300 crore, advanced as loans to subsidiaries, were partly siphoned off or remained unaccounted," the ED alleged.</p>.<p>The statutory auditors, P Murali & Co. and PCN & Associates (related entity of P Murali & Co.), apart from failing to report outright fraud, "colluded" with the management/promoters of the company, it said.</p>
<p>The Enforcement Directorate on Saturday said it has seized cash and gold worth more than Rs 12 crore from the premises of a Hyderabad-based auditor as part of an investigation into alleged foreign exchange violation.</p>.<p>The action came after raids were undertaken on August 23 under the Foreign Exchange Management Act (FEMA) at the office of Brightcom Group Ltd., residences of its CEO M Suresh Reddy and CFO SLN Raju and the residence and office of its auditor P Murali Mohana Rao.</p>.ED attaches over Rs 5 crore assets in online betting, gambling linked money laundering case.<p>The ED probe stems from a Securities and Exchange Board of India (SEBI) investigation regarding impairment of assets worth Rs 868.30 crore by Brightcom Group through its subsidiaries abroad, the federal agency said in a statement.</p>.<p>"Incriminating documents and digital devices were seized including unaccounted cash of Rs 3.30 crore and gold jewellery and bullion worth Rs 9.30 crore from the residence of auditor, P Murali Mohana Rao (of P. Murali & Co.)."</p><p>"The residential premises of M Suresh Reddy were sealed," it said.</p>.<p>The probe found that Brightcom Group financed preferential issues by "round-tripping" funds through subsidiaries and conduit entities and that it falsely claimed to have received full payment for preferential shares/warrants by providing "forged and fabricated bank statements" to the SEBI.</p>.<p>"It was found that more than Rs 300 crore, advanced as loans to subsidiaries, were partly siphoned off or remained unaccounted," the ED alleged.</p>.<p>The statutory auditors, P Murali & Co. and PCN & Associates (related entity of P Murali & Co.), apart from failing to report outright fraud, "colluded" with the management/promoters of the company, it said.</p>