In connection with fraud approval of loans under the Kisan Credit Card (KCC) to farmers for the construction of fish tanks, the Enforcement Directorate (ED) carried out search operations at six locations in Andhra Pradesh and Telangana, according to a press release issued by the investigative agency on Saturday.
On November 29 (Wednesday), the searches were carried out in the states.
The Central Bureau of Investigation (CBI) and Anti-Corruption Bureau (ACB) in Visakhapatnam filed a formal complaint (FIR) alleging widespread fraud at the IDBI Bank’s Rajahmundry Branch in the East Godavari District regarding the processing and approval of short-term loans and KCC to fish farming farmers for the construction of ponds or tanks. This complaint prompted the ED to launch an investigation.
The investigation revealed that the accused stole blank checks and KYC documents from their farmers, acquaintances, and workers under the guise of provident funds, medical reimbursement, banking channels for salary payment, etc.
The defendants obtained loans worth Rs 311.05 crore under their names with the help of bank employees and appraisers. According to the ED press release, the loan amounts that had been credited to the accounts of the farmers and employees were moved to the accused accounts, and in numerous instances, the full loan amount was taken out in cash.
As a result, the accused individuals served as loan brokers and eventually utilized the money for their own benefit, investing it in their companies and buying real estate.
Loan aggregators’ homes and offices were searched, and as a result, digital devices and incriminating documents were found and seized, exposing a variety of movable and immovable properties obtained with the proceeds of criminal activity.
Inquiry into the matter is still ongoing.
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