New Delhi: A former chief manager of Andhra Bank, a promoter of an Andhra Pradesh-based company and others have been named in a charge sheet by the ED in a money laundering case linked to an alleged multi-crore bank loan fraud case.
The federal probe agency alleged in a statement that the loan amount was “even diverted to produce a Tollywood (Telugu cinema industry) movie by the name ‘Aakasame Haddu’ causing loss of Rs 54.64 crore (including interest) to the public sector bank”.
The prosecution complaint (charge sheet) was filed by the agency against S Ramchander Rao, former chief manager of Andhra Bank; a company called Venus Aqua Foods Ltd.; its managing director Nimmagadda Ramakrishna and others under sections of the Prevention of Money Laundering Act (PMLA).
The charge sheet was filed before a special PMLA court in Vishakhapatnam and the court has taken cognisance of it on May 9, the statement said.
“Venus Aqua Foods Limited, its directors and their family members and relatives have availed loan for pisciculture activities and agriculture cash credit loans (AGLCC) from Andhra Bank in connivance with the chief manager of Andhra Bank but did not utilise the loan proceeds for the intended purpose,” the Enforcement Directorate said.
Loans, it said, were withdrawn in cash and “diverted” to repay old loans and for purchasing immovable properties in the name of directors of Venus Aqua Foods Limited and their family members.
The ED case stems from a CBI FIR that alleged that the company and its directors cheated the Union Bank of India’s (erstwhile Andhra Bank) Gudivada branch (Krishna district) to the tune of Rs 36.97 crore.