The Enforcement Directorate (ED) has provisionally attached movable as well as immovable assets totalling to about ₹51.45 crore belonging to Kumar Pappu Singh, his family members and his firms/companies under the PMLA, 2002, in the case of fraudulent loans allegedly obtained by Pappu Singh from IDBI Bank, on Tuesday.
The attached properties include house sites, fish tanks and poultry farms worth ₹35.70 crore, cash deposits in various bank accounts held in the name of Kumar Pappu Singh and the borrowers with IDBI Bank to the tune of ₹15.73 crore.
As per the investigation initiated under PMLA, 2002 on the basis of an FIR registered under Sections 120B, 420, 468 read with 471 of the Indian Penal Code, 1860 and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 by Central Bureau of Investigation, Anti Corruption Branch, Visakhapatnam, Pappu Singh and others fraudulently availed Kisan Credit Card (KCC) loans from IDBI Bank for fish farming.
The investigation also revealed that Pappu Singh had fraudulently availed KCC loans in the names of 87 borrowers who were his family members, employees and persons known to him. He had allegedly obtained the loans by giving his properties as collateral security and had allegedly misappropriated the loans sanctioned to the borrowers.
The loan amounts sanctioned to the borrowers were illegally diverted from the bank accounts of the borrowers to the savings account of Pappu Singh and into the bank accounts of his firms/companies, the ED has claimed.
Searches were conducted at the residential and business premises of the accused on July 16, 2019, and several incriminating documents were allegedly recovered.
The total loan amount of ₹69.46 crore, which was the proceeds of the fraud, was allegedly utilised for acquiring properties in Pappu Singh’s name and in the names of his companies as well as for his poultry and fish farming businesses.
The properties acquired by Pappu Singh using the proceeds of the fraud and his other properties along with the amounts lying in his bank account and in the bank accounts of some other borrowers have also been attached under Section 5(1) of PMLA, 2002.
