PMLA Court Sentences L. Srinivas Goud to 5 Years Rigorous Imprisonment; Forgery, Impersonation and Diversion of Loan Funds Proven.
Hyderabad – In a significant development in a financial fraud and money laundering case, the Enforcement Directorate (ED) on Monday secured the conviction of accused L. Srinivas Goud in a bank loan fraud investigation. The Metropolitan Sessions Judge Court (MSJ), Nampally, Hyderabad, found the accused guilty under Section 3 read with Section 4 of the Prevention of Money Laundering Act (PMLA), 2002.
The Court awarded five years of rigorous imprisonment and imposed a fine of ₹25,000 on Goud. A similar penalty has also been imposed on his firm, Mallika Inn Bar and Restaurant.
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Forgery and Identity Fraud Used to Secure a Bank Loan
According to the ED’s findings, Goud, proprietor of Mallika Inn Bar and Restaurant, obtained a bank loan using fraudulent documentation and identity impersonation tactics.
Investigators revealed that the accused forged property documents belonging to his mother and fabricated her signature to present them as collateral before the Federal Bank. To execute the forgery and complete KYC compliance, an impersonator was made to appear as his mother during the loan processing.
Although the loan was sanctioned under the category of housing finance and renovation of business infrastructure, the accused knowingly diverted the sanctioned amount for unrelated and unauthorized purposes.
₹44.80 Lakh Loss to Bank Confirmed
The agency concluded that the misappropriated loan amount constituted Proceeds of Crime under the PMLA framework.
The fraudulent activity resulted in a financial loss of ₹44.80 lakh to the lending institution. The ED stated that the pattern of diversion and concealment indicated deliberate intent to defraud the bank and launder illicit gains.
Accused Evaded Court Proceedings, Arrested After Surveillance
Court records indicate that during the trial, the ED examined multiple witnesses and presented documentary evidence. However, the accused repeatedly avoided court appearances, prompting the issuance of multiple non-bailable warrants (NBWs).
Despite repeated attempts, Goud remained untraceable at previously known locations. Investigators later identified a new address using a combination of electronic tracking and human intelligence.
Following a week-long surveillance operation, the accused was located and arrested in the early hours of 27 October 2025 and subsequently produced before the Court, which remanded him to judicial custody.
Bail Pleas Rejected Due to Conduct and Case Severity
During the judicial process, the accused repeatedly filed bail applications. However, the Court rejected them, stressing that Goud’s conduct—including absconding, document manipulation and non-cooperation—posed a risk of justice obstruction.
Conviction Seen as Strong Precedent
On 24 November 2025, the Court issued its final judgment, convicting Goud. He remains lodged in judicial custody following the verdict.
The Enforcement Directorate stated that the conviction sends a strong message against financial fraud and willful loan defaults, especially those involving document forgery and money laundering tactics.
Officials added that strict enforcement under PMLA is essential to prevent abuse of banking systems and protect public financial institutions.
