Visakhapatnam, Oct 9 (IANS) The Directorate of Enforcement, Visakhapatnam Sub-Zonal Office has restored Rs 56.13 crore Proceeds of Crime (POC) to the IDBI Bank in the Kisan Credit Card (KCC) Fish Tank Case.

The Central agency said on Thursday that it successfully accomplished the process of restitution of properties worth Rs. 56.13 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2022.

These properties were attached during PMLA investigations in two cases related to large scale fraud in processing and sanctioning of loans under Kisan Credit Card (KCC) for construction of ponds / tanks to farmers of fish farming / pisciculture.

The attached assets for which restitution has been allowed by the Special PMLA Court at Visakhapatnam include 155 parcels of land, residential/commercial plots and apartments in the state of Andhra Pradesh and Telangana.

The loans were sanctioned at the Bhimavaram and Palangi branches of IDBI Bank in the state of Andhra Pradesh. ED initiated investigation in the two cases on the basis of FIRs registered by the CBI, Visakhapatnam against Rebba Satyanarayana, Kumar Pappu Singh, bank officials and others for defrauding IDBI bank in the processing and sanction of KCC fish tank loans.

ED investigation revealed that Rebba Satyanarayana and Kumar Pappu Singh acted as loan aggregators for KCC loans totalling to Rs. 181.87 Crore in the name of 230 borrowers during FY 2010-11 and FY 2011- 12 at various branches of IDBI Bank. Investigation revealed that the KCC Fish Tank loans were obtained fraudulently by Rebba Satyanarayana and Kumar Pappu Singh in the names of their family members, employees, friends etc. by using forged/fake documents and acting as guarantors by mortgaging properties belonging to them and their family members as well as properties purchased by them in the names of their employees / friends.

The loans availed were diverted and utilised for purchase of properties and making investments. The total Proceeds of Crime in the cases is estimated at Rs. 234.23 crore and properties worth Rs. 84.93 crore were provisionally attached by ED in the cases during the course of investigation.

ED has also filed Prosecution Complaints in the cases before the Special PMLA Court at Visakhapatnam and the Court has taken cognizance of the same.

IDBI bank filed restitution applications in both the cases under Section 8(8) of the PMLA, 2002 before the Special Court (PMLA) at Visakhapatnam and ED conveyed concurrence for restitution of immoveable properties attached by it so that such attached properties could be restored to the victim of the fraud i.e. IDBI Bank.

The Court through its orders of September 15 and 18 allowed the restitution petitions thereby paving the way for restoration of attached assets.

–IANS

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