Hyderabad Bar Owner Gets 5-Year Jail Term for Bank Loan Fraud

Hyderabad: The Enforcement Directorate (ED) in Hyderabad has secured a five-year jail sentence for L. Srinivas Goud, the owner of Mallika Inn Bar & Restaurant, in a money laundering and bank loan fraud case.

A special court in Nampally sentenced Goud to five years of rigorous imprisonment under the Prevention of Money Laundering Act (PMLA). The court also imposed a fine of ₹25,000 on him and his company.

According to the ED, Goud took a loan from Federal Bank by forging property documents belonging to his mother and using another person to impersonate her at the bank. Though the loan was shown as a housing and renovation loan, he used it for other purposes. The bank suffered a loss of ₹44.8 lakh.

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During the trial, Goud avoided appearing in court several times, resulting in multiple non-bailable warrants. After weeks of tracking, ED officials found and arrested him in October. His bail pleas were rejected, and he stayed in judicial custody until the court delivered its judgment.

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