Bank loan

Bank loan fraud: Law Enforcement Directorate seizes assets worth Rs 100,000,000

The ED said on Thursday it had seized assets worth Rs 100 crore from a ‘regular offender’, who took out new loans to repay old ones, and was being questioned for money laundering. money linked to alleged fraud against an IDBI branch in Andhra Pradesh. Rebba Satyanarayana’s farmlands, fish ponds, commercial sites, plots and apartments located in Andhra Pradesh and Telangana have been provisionally seized under the Prevention of Money Laundering Act (PMLA) , the Enforcement Directorate (ED) said in a statement.

Satyanarayana and his family members are accused of “fraudulently using KCC (Kisan Credit Card Scheme) aquarium loans on behalf of 143 benami borrowers from IDBI Bank, Rajahmundry branch, amounting to Rs 112.41 crore “.

He was initially booked on these charges by the Central Bureau of Investigation (CBI), following which the ED became aware of the case.

The ED said Satyanarayana “was the aggregator and ultimate beneficiary of all KCC loans issued to borrowers and that he conspired with IDBI bank officials and others to avail loans on behalf of the borrowers. members of his family, relatives and acquaintances”.

These loans, the Federal Investigation Agency said, were first transferred to the borrowers’ savings accounts – opened by Satyanarayana – and later most of the said amount was withdrawn in cash.

The money was handed over to the defendant, which Satynarayana used for various purposes such as “repayment” of earlier loans taken out by entities in his name, his relatives and benami, but controlled by him, he added. .

The ED said the accused also used the loan funds to buy properties in his name, in the name of his relatives as well as in the name of Benami and invested in his import-export businesses.

The agency alleged that properties purchased by Satyanarayana through these means “were again used to mortgage to obtain other loans in their other business entities”.

“He is a repeat offender who takes out cyclical loans to repay old loans and divert some of the sanctioned loans to run his various Benami businesses,” ED said.

It was found that Satyanarayana “incorporated a foreign entity in New Jersey, USA and exported seafood and farmed shrimp worth more than USD 24,000,000 from his domestic entity to said foreign entity, whose export is pending.

“This non-completion of the export is also suspected,” he added.