The Enforcement Directorate has conducted searches at six locations related to the accused in sanction of loans under Kisan Credit Card (KCC) to farmers for construction of fish tanks in Telangana and Andhra Pradesh, on November 29, a release from it said on Saturday.
The searches were conducted under the provisions of the Prevention of Money Laundering Act. As part of the searches, several digital devices, documents relating to immovable and movable properties acquired from the proceeds of crime were seized.
The EDs investigation was based on the case registered by CBI, ACB, Visakhapatnam for alleged large-scale fraud at IDBI Bank, Rajahmundry Branch, East Godavari district in Andhra Pradesh in connection with processing and sanctioning of short-term loans /KCC to farmers of fish farming for construction of ponds and tanks.
“Investigation revealed that the accused persons took KYC documents and blank cheques from their employees, known persons, and farmers on the pretext of salary payments through banking channels, medical reimbursement, and provident fund. But using these documents, they took loans in their names to the tune of ₹ 311.05 crore with the connivance of bank officials and valuers.”
The loan amounts credited into the accounts of workers and farmers were transferred to the accounts of the accused persons, and in many cases the entire loan amount was withdrawn in cash.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 ED stated.
An investigation is underway.
