In the PMLA case relating to the IDBI KCC Fish Farming Loans Scam, the ED has attached 47 immovable assets worth Rs 20.31 crore.
Under the provisions of the Prevention of Money Laundering Act, 2022 (PMLA), the Enforcement Directorate (ED) has provisionally attached immovable assets with a market value of Rs 20.31 crore that belong to the accused Mada Subrahmanyam, Mada Srinivasa Rao, Ganduri Mallikharjuna Rao, Eluri Prasada Rao, as well as their family members and various firms and companies in a case/scam of fraudulent loans obtained from the IDBI Bank, Guntur branch.
On the basis of four first information reports filed by the Central Bureau of Investigation’s Anti-Corruption Branch in Visakhapatnam and Hyderabad against the individuals named above and others for fraudulently obtaining Kisan Credit Card (KCC) loans from IDBI Bank for the purpose of fish farming, the Enforcement Directorate (ED) has begun an investigation under the PMLA.
ED Investigation under PMLA revealed that four aggregators named Mada Subrahmanyam, Mada Srinivasa Rao, Ganduri Mallikharjuna Rao and Eluri Prasada Rao conspired with Chandra Sekhar Harish Chennappagari, the then Manager of IDBI Bank, Guntur branch. In furtherance of the conspiracy, the said aggregators fraudulently availed Kisan Credit Card loans from IDBI Bank totaling to Rs 57.10 crore. This fraud was carried out in the names of 247 borrowers who were the family members of these accused, or employees and persons known to them. The accused obtained the borrowers’ permission to use their properties as collateral securities, and then misappropriated the funds from the loans that were approved for the borrowers.
The investigation conducted by the ED also uncovered the fact that a portion of the proceeds of crime, namely the loan amounts that were approved for the borrowers, was used by the aforementioned aggregators in order to purchase a number of immovable properties both in their own names and in the names of other people who were known to them. The ED has exercised its authority under the provisions of the PMLA to seize a total of 47 immovable properties with a combined market value of Rs. 20.31 Crore. These properties were acquired by the aforementioned aggregators and the then-bank Manager using the crime proceeds of the case.
Further investigation in the case by the ED is under progress.