Bank loan fraud: the Directorate of Enforcement attaches assets worth Rs 100 cr
The ED said on Thursday it seized assets worth Rs 100 crore from a “repeat offender,” who took out new loans to repay old ones, and is under investigation for money laundering linked to suspected fraud against an IDBI branch in Andhra Pradesh.
Rebba Satyanarayana’s agricultural land, fish ponds, commercial sites, plots and apartments located in Andhra Pradesh and Telangana have been provisionally attached under the Prevention of Money Laundering Act (PMLA), the Directorate of Execution (ED) said in a statement.
Satyanarayana and his family are accused of “fraudulently using KCC (Kisan Credit Card Scheme) aquarium loans on behalf of 143 benami borrowers from IDBI bank, Rajahmundry branch, in the amount of 112.41 crore of rupees “.
He was first convicted of these charges by the Central Bureau of Investigation (CBI), after which the ED learned of the case.
The managing director said Satyanarayana “was the aggregator and ultimate beneficiary of all KCC loans to borrowers and had conspired with IDBI bank officials and others to obtain loans on behalf of the borrowers. members of his family, relatives and acquaintances “.
These loans, according to the federal investigative agency, were first transferred to borrowers’ savings accounts – opened by Satyanrayana – and later most of the said loan was withdrawn in cash.
The money was handed over to the accused, who Satynarayana used for various purposes, such as the “repayment” of previous loans made by entities in his name, relatives and in his name, but controlled by him, a- he indicated.
The ED said the accused also used the loan funds to purchase properties in his name, on behalf of his relatives and on behalf of Benami and had invested in his import-export businesses.
The agency alleged that the properties purchased by Satyanrayana through these means “were again being used to mortgage to obtain further loans in their other business entities”.
“He is a repeat offender who takes out cyclical loans to repay old loans and divert part of the sanctioned loans to manage his various benami businesses,” said the ED.
It was found that Satyanarayana “incorporated a foreign entity in New Jersey, United States, and exported farmed seafood and prawns worth over $ 24,000,000 from its domestic entity. to said foreign entity, which is pending export fulfillment.
“This non-achievement of the export is also suspected,” he said.
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