In accordance with the Prevention of Money Laundering Act, the Directorate of Enforcement (ED) has filed a Prosecution Complaint before the Honorable Special Court in Visakhapatnam, Andhra Pradesh against Polepalli Venkat Prasad, M/s PBR Poultry Tech, M/s. PBR Agri Tech Private Limited, Bhupathiraju Krishna Mohan Raju (the then Branch Manager, Indian Overseas Bank, Veerabadrapuram On May 9, 2022, the Special PMLA Court in Visakhapatnam took cognizance of the prosecution complaint.
Based on an FIR filed by CBI BS&FC, Bangalore under different provisions of the Indian Penal Code, 1860, and Section 13(2) r/w 13(d) of the Prevention of Corruption Act, 1988, ED opened a money-laundering probe.
The results of the ED investigation, among other things, showed that M/s PBR Poultry Tech obtained a term loan in collusion with Bhupathiraju Krishna Mohan Raju for the purpose of building a shed, buying equipment, and working capital, but did not use the loan funds as anticipated. The investigation also showed that M/s PBR Agri Tech Private Limited, a sister company of M/s PBR Poutry Tech Limited, had borrowed money from Andhra Bank, Venkatraipuram, Tanuku for a term loan and a cash credit loan for the purchase of plant and machinery and the construction of sheds, but had not paid the bank back.
The investigation also showed that Polepalli Venkat Prasad obtained Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Loans in the names of 5 of his relatives and acquaintances by submitting phoney documentation, defrauding the bank in collusion with Sri B. K. Mohan Raju (the then Branch Manager, Indian Overseas Bank, Veerabadrapuram Branch). The inquiry also showed that a portion of the aforementioned loans was used to buy real estate under the names of partners of M/s PBR Poultry Tech. The Public Sector Bank suffered a total loss of Rs. 17.27 Crore (including interest) as a result of all the aforementioned loans being declared NPA by the banks.
The properties of Mr Polepalli Venkat Prasad and others had already been attached by the ED to the tune of Rs. 7.57 Crore through a Provisional Attachment Order, which was upheld by the Hon’ble Adjudicating Authority, PMLA, New Delhi in Original Complaint of 2020 dated 22.04.2021. Further research is now being conducted.
