Visakhapatnam, Oct 9 – The Directorate of Enforcement (ED) in Visakhapatnam has returned more than ₹56 crore in crime proceeds to IDBI Bank after a big fraud probe. The money was seized under India’s Prevention of Money Laundering Act (PMLA) in two cases that uncovered large‑scale loan manipulation.
The seized assets – 155 pieces of land, residential and commercial plots, and apartments across Andhra Pradesh and Telangana – were tied up in the Kisan Credit Card (KCC) Fish Tank scheme. The scheme was meant to help fish‑farmers build ponds, but fraudsters hijacked it to steal millions of rupees.
Investigation findings showed that two loan brokers, Rebba Satyanarayana and Kumar Pappu Singh, acted as “loan aggregators.” Between 2010‑11 and 2011‑12, they secured about ₹181 crore in KCC loans for 230 borrowers at IDBI Bank’s Bhimavaram and Palangi branches. The brokers used forged documents, impersonated family members, employees and friends, and mortgaged properties they owned or had purchased in others’ names to secure the loans.
The funds were not used for fish‑pond projects. Instead, the fraudsters diverted the money to buy property and for other investments. The total illicit proceeds were estimated at ₹234 crore, and during the investigation the ED attached assets worth ₹84.93 crore.
IDBI Bank asked the Special PMLA Court in Visakhapatnam to restore the attached properties. The court agreed, ordering the restitution of files on September 15 and 18. Following the court’s decision, the ED cleared the properties, allowing IDBI Bank to reclaim them.
This move underscores the banking regulator’s push to recover assets and protect legitimate borrowers. The PMLA court’s prompt action could signal a tougher stance on financial fraud in the Indian banking sector.
Source: ianslive
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