ED initiated investigation on the basis of FIR registered by CBI, ACB, Visakhapatnam under various sections of the Indian Penal Code, 1860 and Prevention of Corruption Act, 1988 alleging large-scale fraud at IDBI Bank, Rajahmundry Branch
Fintech Biznews Service
Mumbai, December 2, 2023: Directorate of Enforcement (ED) has conducted search
operations at six locations in Andhra Pradesh and Telangana on 29.11.2023 at the
residences and office premises of loan aggregators under the provisions of the
PMLA, 2002 in connection with investigation regarding fraud in sanction of loans
under Kisan Credit Card (KCC) to farmers for construction of fish tanks. During the
search operations, digital devices and various incriminating documents were
recovered and seized, according to a Press Release issued by Directorate of
Enforcement (ED) on 2/12/2023.
ED initiated investigation on the basis of FIR registered by CBI, ACB,
Visakhapatnam under various sections of the Indian Penal Code, 1860 and
Prevention of Corruption Act, 1988 alleging large-scale fraud at IDBI Bank,
Rajahmundry Branch, East Godavari District, Andhra Pradesh in connection with
processing and sanctioning of short term loans /KCC to farmers of fish
farming/pisciculture for the construction of ponds/tanks. ED investigation revealed
that the accused persons took KYC documents, blank cheques etc. from their
employees, known persons, farmers etc. on the pretext of salary payment through
banking channels, medical reimbursement, provident fund, etc. On the basis of 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, etc. 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accounts and in many cases, the entire loan amount was withdrawn in cash.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 personal gains including investment in their businesses and
acquisition of properties in the names of family members and other persons. The
searches were conducted at the residences and office premises of loan aggregators
which resulted in the recovery & seizure of digital devices and incriminating
documents revealing numerous immovable / movable properties acquired from the
proceeds of crime.
Further investigation is under progress.
