Money & Banking

Bank fraud case: ED attaches assets worth ₹2.42 cr in AP, Telangana

Our Bureau New Delhi | Updated on August 19, 2019

Enforcement Directorate (ED) has attached assets worth ₹ 2.42 crore of Ganne Srinivasa Rao and others in a bank fraud case. The attached properties include agricultural lands and residential flats located in Andhra Pradesh and Telangana.

The agency has initiated investigations under Prevention of Money Laundering Act (PMLA), 2002 based on a charge sheet filed by Central Bureau of Investigation (CBI) in a bank fraud by the accused. During investigation under PMLA, it is revealed that Rao fraudulently availed housing and vehicle loans to the tune of ₹25.50 crore from various banks in his name and the names of his relatives and employees by submitting fake or forged documents.

The probe has also revealed, that for siphoning off the loan proceeds so availed, Rao opened bank accounts in the name of shell entities - Durga Steels, Delta Ion Exchange Private Limited, Automotive Manufacturers Private Limited, Mahavir Motors Private Limited and Saravana Motors. Accused further floated fictitious entities - Sri Saravana Industries, Sri Subramanyam Industries, Sri Murugan Industries in the names of his relatives and employees. “This was done to avoid early detection by the banks and to layer the proceeds of crime and conceal them for personal benefit. The loans availed by Rao and his relatives or employees slipped into non-performing assets with the total outstanding amount presently due to all the banks pegged at ₹ 9.83 crore.

So far thirteen immovable properties purchased at a value of ₹ 2.43 crore which were derived from the proceeds of crime in the names of Rao, his mother Ganne Manikumari and Nandigam Naveen Kumar, a relative of Rao are identified and attached under PMLA. The present market value of these properties is estimated to be three to four times the purchase price. Earlier, the agency had seized two SUVs in June 2019.

Published on August 19, 2019

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