New Delhi: The Directorate of Enforcement (ED) conducted search operations at six locations in Andhra Pradesh and Telangana, said a press release by the ED on Saturday.
The raids were conducted on November 29, 2023 (Wednesday).
“The search operations were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an investigation regarding fraud in the sanction of loans under the Kisan Credit Card (KCC) to farmers for the construction of fish tanks,” said the official statement.
“Digital devices and various incriminating documents were recovered and seized during the search operations,” added the official statement.
As per the official release, the ED initiated the investigation based on the FIR registered by the Central Bureau of Investigation (CBI) and Anti-Corruption Bureau (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 the processing and sanctioning of short-term loans (KCC) to farmers of fish farming and pisciculture for the construction of ponds and tanks.
The press note further mentioned that the ED investigation revealed that the accused persons took KYC documents, blank checks, etc. from their employees, known persons, farmers, etc. on the pretext of salary payment through banking channels, medical reimbursement, provident funds, etc.
Based on these documents, the accused persons 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 were transferred to the accused persons’ accounts, and in many cases, the entire loan amount was withdrawn in cash, said the press release.
The accused persons thus acted as loan aggregators and ultimately used the loan amounts for their gains, including investment in their businesses and acquisition of properties in the names of family members and other persons, added the press release.
The press note further mentioned that the searches were conducted at the residences and office premises of loan aggregators, which resulted in the recovery and seizure of digital devices and incriminating documents revealing numerous immovable and movable properties acquired from the proceeds of crime.
Further investigation into the matter is in progress, said the press release.
