Hyderabad Court Convicts L. Srinivas Goud in PMLA Bank Fraud Case.

Headnote:

The Court of MSJ, Nampally, Hyderabad convicted L. Srinivas Goud under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA), 2002, in connection with fraudulent availing of a loan from Federal Bank through impersonation and forgery. The accused was sentenced to rigorous imprisonment for 5 years and fined Rs. 25,000 each for himself and his firm Mallika Inn Bar and Restaurant. The Court confirmed that the loan obtained was misutilized, creating proceeds of crime and causing a loss of Rs. 44.80 lakh to the bank.

Background:

• L. Srinivas Goud, proprietor of Mallika Inn Bar and Restaurant, fraudulently availed a loan from Federal Bank by forging documents and impersonating his mother.

• An impostor impersonated his mother before the bank, and title deed documents of his mother’s property were forged to obtain the loan, which was projected as a housing loan and for renovation, but was diverted for other purposes.

• Directorate of Enforcement (ED), Hyderabad Zonal Office, filed a prosecution complaint under the PMLA after completing investigation into the fraudulent transaction.

• During trial, the accused repeatedly avoided appearing before the Court, leading to issuance of non-bailable warrants on multiple occasions.

• The accused’s residence had changed, but after electronic and human intelligence, his new address was confirmed, and surveillance was conducted over one week. He was apprehended on 27 October 2025 and produced before the Court, which remanded him to judicial custody.

• Successive bail applications were rejected, considering his antecedents, and the trial proceeded to conviction.

Court’s Observations:

• The Court noted that fraudulent diversion of bank loan constituted clear proceeds of crime under PMLA.

• Impersonation of a relative and forgery of documents demonstrated intentional evasion of law and criminal sophistication.

• Continuous avoidance of the Court and attempt to delay proceedings did not mitigate culpability.

• Considering the magnitude of financial loss (Rs. 44.80 lakh) and criminal conduct, the accused was convicted and sentenced to rigorous imprisonment.

• Fine was imposed on both the accused and his firm, holding the entity accountable under PMLA.

• The Court confirmed that judicial custody should continue and enforcement of sentence proceeds as per law.

Legal Provisions Discussed:

• Section 3, PMLA 2002 – Punishment for laundering of proceeds of crime.

• Section 4, PMLA 2002 – Punishment for knowingly assisting or acquiring proceeds of crime.

• Indian Penal Code Sections – Relevant sections relating to forgery, cheating, and criminal conspiracy (implicit in the case).

• Judicial Custody & Bail Principles – Consideration of antecedents and flight risk in denial of bail.

Citation: 2025:HYD:PMLA:1124

Case: Directorate of Enforcement v. L. Srinivas Goud & Mallika Inn Bar and Restaurant

Court: Court of Metropolitan Sessions Judge, Nampally, Hyderabad

Coram: Hon’ble Court of MSJ, Nampally

Date of Decision: 24 November 2025

Case No.: Prosecution Complaint filed by ED Hyderabad Zonal Office