In accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) conducted search operations at six locations in Andhra Pradesh and Telangana on November 29, 2023. This was done in connection with an investigation into possible fraud involving the approval of loans to farmers for the construction of fish tanks under the Kisan Credit Card (KCC).
Under various sections of the Indian Penal Code, 1860 and the Prevention of Corruption Act, 1988, ED began an investigation based on a formal complaint filed by CBI, ACB, Visakhapatnam, alleging widespread fraud at IDBI Bank, Rajahmundry Branch, East Godavari District, Andhra Pradesh, in relation to the processing and approval of short-term loans / Kisan Credit Card (KCC) to farmers engaged in pisciculture and fish farming for the construction of ponds/tanks.
An ED investigation found that the accused stole KYC documents, blank checks, and other items from their workers, acquaintances, farmers, and other individuals under the guise of paying salaries via banking channels, covering medical expenses, providing provident funds, etc. With the help of bank employees and valuers, they obtained loans totalling Rs. 311.05 crores in their names based on these papers. The loan amounts that had been credited to the accounts of labourers, farmers, etc. were moved to the accounts of the defendants, and in numerous instances, the whole loan amount was taken out in cash.
As a result, the accused individuals served as loan brokers and utilized the funds for their own benefit, investing in their companies and purchasing real estate under the names of friends and relatives. Several immovable and moveable properties obtained from the proceeds of crime were discovered during the searches of the loan aggregators’ offices and homes, which led to the recovery and confiscation of digital devices and damning papers. Additional research is currently being conducted.
