The Directorate of Enforcement (ED) recently conducted search operations at six locations in Andhra Pradesh and Telangana. This was done under the Prevention of Money Laundering Act (PMLA), 2002, as part of an investigation into fraud related to loans given to farmers for building fish tanks.
The ED began this investigation after receiving a complaint from the CBI and ACB, Visakhapatnam. The complaint alleged a large-scale fraud at IDBI Bank, Rajahmundry branch, where short-term loans were given to farmers for fish farming. These loans were meant for constructing ponds and tanks.
During the investigation, it was discovered that the accused individuals obtained KYC documents and blank cheques from employees, known persons, and farmers. They did this by pretending that the documents were needed for salary payments, medical reimbursements, and provident funds. Using these documents, they took loans worth Rs. 311.05 crore in their names with the help of bank officials and valuers.
The loan amounts were then transferred into the accounts of workers, but were ultimately withdrawn in cash by the accused individuals. They used the loan amounts for personal gains, such as investing in businesses and acquiring properties in the names of family members and other people.
As part of the search operations, the ED seized digital devices and incriminating documents from the residences and office premises of the accused individuals. These documents revealed numerous properties that were acquired using the proceeds of the crime. The investigation is still ongoing.
