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were first transferred to borrowers’ savings accounts – opened by Satyanrayana – and later most of the said loan was withdrawn in cash.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.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Comments are closed.