The government agency charged with implementing India's anti-money laundering law has seized properties from industrialist, Grandhi Eswara Rao.

His companies are currently facing charges in relation to a letter of credit (L/C) fraud.

Asset seizure

The Enforcement Directorate has seized properties worth around US$535,000 from Rao and his family.

This follows the directorate's March 2014 seizure of assets attached to the industrialist valued at US$865,000.

False documents

The Central Bank of India's fraud unit has filed a criminal case against Sarita Steels and Industries Limited, which is owned by Rao and others.

The charges relate to the misuse of an L/C facility that resulted in a US$1.4 million loss for the State Bank of India.

Loss recovery

The L/C facility was obtained on the basis of documents that turned out to be false.

According to an Economic Directorate statement, it has now recovered assets valued at the same amount as losses incurred as result of the fraud.

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