The Enforcement Directorate logo.
Credit: PTI File Photo
Hyderabad: The Directorate of Enforcement (ED) has conducted searches at six locations in Andhra Pradesh and Telangana, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with the investigation regarding fraud in the sanction of loans under Kisan Credit Card (KCC) to farmers for construction of fish tanks. While the searches were conducted on November 29, it came to light on Saturday.
ED investigation revealed that the accused persons took KYC documents, blank cheques, etc. from their employees, known persons, farmers, etc. on the pretext of salary payment through banking channels, medical reimbursement, provident fund, etc. Based on these documents, they took loans in their names to the tune of Rs 311.05 crore with the connivance of bank officials and valuers.
The loan amounts credited into the accounts of workers, farmers, etc. were transferred to the accused persons’ accounts and in many cases, the entire loan amount was withdrawn in cash.
The accused persons thus acted as loan aggregators and ultimately used the loan amounts for their personal gains including investment in their businesses and acquisition of properties in the names of family members and other persons.
The searches were conducted at the residences and office premises of loan aggregators which resulted in the recovery and seizure of digital devices and incriminating documents revealing numerous immovable/movable properties acquired from the proceeds of crime. Further investigation is under progress.