VISAKHAPATNAM: The officials of the Directorate of Enforcement (ED) conducted searches at six locations in Andhra Pradesh and Telangana on Wednesday under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with an investigation regarding fraud in the sanction of loans under Kisan Credit Card (KCC) to farmers for construction of fish tanks.
The searches conducted at the residences and office premises of loan aggregators resulted in the recovery and seizure of digital devices and incriminating documents revealing numerous immovable and movable properties acquired from the proceeds of crime.
ED initiated an investigation based on an FIR registered by the ACB wing in CBI, Visakhapatnam under various sections of the IPC and Prevention of Corruption Act, 1988 alleging large-scale fraud at IDBI Bank, Rajahmundry Branch in East Godavari District. The bank processed and sanctioned short-term loans or KCC to farmers of fish farming or pisciculture for the construction of ponds and tanks.
ED investigation revealed that the accused persons took KYC documents, blank cheques, and others from their employees, known persons, farmers, and others on the pretext of salary payment through banking channels, medical reimbursement and provident fund.
Based on these documents, they took loans in their names to the tune of Rs. 311.05 crore with the connivance of bank officials and valuers. The loan amounts credited into the accounts of workers, farmers, and others were transferred to the accused persons’ accounts, and in many cases, the entire loan amount was withdrawn in cash.
The accused persons thus acted as loan aggregators and ultimately used the loan amounts for their gains including investment in their businesses and acquisition of properties in the names of family members and other persons. Further investigation of ED is under progress.
