ED attaches properties worth Rs 18.33 crore in Andhra bank loan fraud case
The Directorate of Enforcement (ED) has provisionally attached immovable properties worth Rs 18.33 crore belonging to Kallam Peri Reddy and associates in the case of Kallam Modern Rice Mills Pvt Ltd, in connection with obtaining credit facilities from SBI by submitting fake/forged documents.
Visakhapatnam: The Directorate of Enforcement (ED) has provisionally attached immovable properties worth Rs 18.33 crore belonging to Kallam Peri Reddy and associates in the case of Kallam Modern Rice Mills Pvt Ltd, in connection with obtaining credit facilities from SBI by submitting fake/forged documents.
ED, Visakhapatnam Sub-Zonal Office in Andhra Pradesh, provisionally attached the immovable properties of Kallam Peri Reddy and his family members/associates under the provisions of the Prevention of Money Laundering Act, 2002.
The Central agency said in a release on Tuesday that it initiated the investigation of the basis of FIR registered by CBI, EOW, Chennai, on the complaint of State Bank of India (erstwhile State Bank of Hyderabad), Guntur, against Kallam Modern Rice Mills Pvt Ltd, Sri Ramabrahma Modern Rice Mills Pvt Ltd, Sri Vinayaka Traders and others. During 2010-2013, the group obtained credit facilities of Rs 24.57 crore from SBH, Arundelpet Branch, Guntur, by submitting fake/forged title deeds of collateral properties and diverted the funds, causing a loss of Rs 18.33 crore to the bank.
Investigation has revealed that Kallam Peri Reddy operated and managed about 26 entities registered in the names of his relatives, employees, and associates, including the three borrower concerns, namely Kallam Rice Mills Pvt Ltd, Sri Ramabrahma Modern Rice Mills Pvt Ltd and Sri Vinayaka Traders.
Analysis of bank accounts revealed that cash of about Rs 23.81 crore was withdrawn from the cash credit accounts of the three borrower concerns in the names of workers, accountants and Kallam Peri Reddy himself, the ED said.
Further investigation revealed that several properties were purchased out of the loan proceeds, partly in cash withdrawn from bank accounts controlled by Kallam Peri Reddy. It is also revealed that Kallam Peri Reddy had transferred some immovable properties to his relatives and associates without receiving any sale consideration. The said properties were only held by them as the namesake owners, while he continued to be the actual beneficial owner.
Accordingly, the ED provisionally attached 50 immovable properties valued at Rs 16.88 crore and five flats valued at Rs 1.45 crore, totalling Rs 18.33 crore, located in Andhra Pradesh and Telangana, as proceeds of crime under PMLA, 2002.
Further investigation is in process, the agency added.
