Money & Banking

ED attaches assets worth ₹ 51.43 cr in IDBI Fish Farming Loan fraud

Our Bureau New Delhi | Updated on January 01, 2020 Published on January 01, 2020

Loan amount of ₹ 69.46 crore sanctioned to the small farmers was illegally aggregated and diverted for making personal investments

Directorate of Enforcement (ED) has attached assets worth ₹ 51.43 crore belonging to the accused Kumar Pappu Singh, his family members, firms and companies controlled by him in IDBI Fish Farming Loan Fraud case.

ED attached house sites, fish tanks and poultry farms worth ₹ 35.70 crore and balances in bank accounts held in the name of Kumar Pappu Singh and other borrowers with IDBI Bank amounting to ₹15.73 crore.

Investigation was initiated under Prevention of Money Laundering Act (PMLA), on the basis of FIR registered by Central Bureau of Investigation, Anti Corruption Branch, Visakhapatnam against officials of IDBI Bank and various loan aggregators and others for fraudulently availing Kisan Credit Card (KCC) loans from IDBI Bank for fish farming. Among accused aggregators in the CBI FIR, Kumar Pappu Singh is the largest loan aggregator whose loan had become a non-performing asset (NPA) was classified as fraud NPA.

ED investigation revealed that Kumar Pappu Singh had fraudulently availed KCC loans in the names of 87 borrowers who were his family members, employees and persons known to him by giving his properties as collateral securities and misappropriated the loans sanctioned to the borrowers. The loan amounts were illegally diverted from the bank accounts of the borrowers to the bank accounts of Kumar Pappu Singh, his firms and companies. Search was conducted at the residential and business premises of Kumar Pappu Singh and several incriminating documents were recovered and seized. The total loan amount of ₹ 69.46 crore sanctioned to the small farmers was illegally aggregated and diverted by the accused for making personal investments, acquiring properties in his name and in the names of his companies and also for his existing poultry and new fish farming businesses. These properties acquired by Kumar Pappu Singh out of Proceeds of Crime, his other properties along with the amounts lying in his bank account and in the bank accounts of other borrowers have been attached, ED said.

Published on January 01, 2020
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