New Delhi, Oct 28 (PTI) Assets worth Rs 7.57 crore have been attached under the anti-money laundering law in a case of alleged bank loan fraud in Andhra Pradesh, the ED said on Wednesday.
A total of 21 immovable properties and Rs 50 lakh deposit kept with an asset reconstruction company of Polepalli Venkata Prasad and his family have been provisionally attached under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate said in a statement.
The immovable assets are located in West Godavari district of Andhra Pradesh.
The case pertains to Prasad, managing partner of PBR Poultry Tech company and other partners for allegedly defrauding Indian Overseas Bank (Veerabhadrapuram branch in Tanuku of West Godavari district) to the tune of Rs 7.34 crore. Probe found, the ED said, that the poultry firm had availed a term loan of Rs 5.60 crore from IOB by 'grossly inflating' the value of the mortgaged properties in collusion with panel advocates. 'Prasad also obtained credit guarantee fund trust for Micro and Small Enterprises (CGTMSE) loans in the name of his associates to the tune of Rs 1.74 crore. The loan amounts were diverted and not repaid causing a loss of Rs 7.34 crore to the IOB,' the ED claimed.
It added that when the accused could not get more loan from this firm, they set up another shell or dummy firm for obtaining the loan. The accused availed 'term loan of Rs 6.73 crore and cash credit of Rs 3.2 crore in the name of a shell company PBR Agritech Private Limited from Andhra Bank (Venkatayapuram Branch in Tanuku) by again inflating the value of the mortgaged properties in collusion with panel advocates.
'These loans were taken on the pretext of construction of a poultry shed but instead the money was siphoned off and diverted to the main accused who in turn used this money to introduce share capital and machinery in PBR Poultry Tech,' the ED said.
The central probe agency said the Andhra Bank loan soon became an NPA (non performing asset). 'Thus, the accused have generated total proceeds of crime worth Rs 17.27 crore,' it said.
The accused were trying to use the concealed proceeds of crime available with them to buy back their mortgaged properties by doing private deals with the ARC firm, the ED claimed.
'This way, they will be able to buy these assets at discounted prices and that too from the defrauded loan money. All the loans have become NPA and after conducting fund trail investigation and on identification of 21 properties and the deposit with ARC firm, provisional attachment order has been issued,' the ED said. PTI NES RDM RDM