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Visakhapatnam, Oct 9 (IANS) The Enforcement Directorate, Visakhapatnam sub-zonal office, has restored the proceeds of crime (POC) of Rs 56.13 crore to IDBI Bank in the Kisan Credit Card (KCC) fish tank case.
The central agency on Thursday said it successfully completed the process of restitution of assets worth Rs. 56.13 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2022.
These properties were attached during PMLA investigation in two cases related to large scale fraud in processing and sanction of loan under Kisan Credit Card (KCC) for construction of ponds/tanks for pisciculture/fish farming farmers.
The attached properties which have been allowed compensation by the Special PMLA Court in Visakhapatnam include 155 parcels of land, residential/commercial plots and apartments in the state of Andhra Pradesh and Telangana.
The loans were sanctioned at Bhimavaram and Palangi branches of IDBI Bank in the state of Andhra Pradesh. ED initiated investigation in two cases based on FIR lodged by CBI, Visakhapatnam against Rebba Satyanarayana, Kumar Pappu Singh, bank officials and others for defrauding IDBI Bank in processing and sanction of KCC fish tank loan.
The ED investigation revealed that Rebba Satyanarayana and Kumar Pappu Singh worked as loan aggregators for KCC Loans. Rs 181.87 crore in the name of 230 borrowers in various branches of IDBI Bank during FY 2010-11 and FY 2011-12. Investigation revealed that the KCC fish tank loan was fraudulently obtained by Rebba Satyanarayan and Kumar Pappu Singh by using forged/fake documents in the name of their family members, employees, friends etc. and by mortgaging the properties belonging to them and their family members and properties purchased by them in the name of their employees/friends.
The loans taken were used to purchase properties and make investments. The total proceeds of crime in the cases are estimated to be Rs. 234.23 crores and assets worth Rs. Rs 84.93 crore were provisionally attached by the ED in the cases during the investigation.
The ED has also filed prosecution complaints in the cases before the special PMLA court in Visakhapatnam and the court has taken cognizance of the same.
IDBI Bank filed restitution applications in both the cases under Section 8(8) of PMLA, 2002, before the Special Court (PMLA) at Visakhapatnam and the ED agreed to restore the immovable properties attached by it, so that such attached properties can be returned to the victim of the fraud, i.e., IDBI Bank.
The Court, through its orders dated September 15 and 18, allowed the restitution petitions, paving the way for the restitution of the attached properties.
–IANS
MS/PGH