<p>The Enforcement Directorate has seized Rs 243.93 crore worth of assets allegedly bought by Amanath Co-operative Bank’s two former senior executives and their relatives with illegal loans. </p>.<p>The central agency said it took the action under the Prevention of Money Laundering Act, 2002, while investigating the fraud at the Bengaluru-headquartered scheduled bank. The senior executives in question are the bank’s former general manager Mohammed Asadulla and the former manager of the bank’s NR Road branch, Shafiulla. </p>.<p>The case started off with the registration of an FIR at the city’s Commercial State police station. The Criminal Investigation Department (CID) took over the case later and filed a charge sheet on May 5, 2006. Besides Asadulla and Shafiulla, the charge sheet named the bank’s then-accountant, K Hidayathulla. </p>.<p>The CID’s case is that the three accused had misappropriated Rs 68.43 crore of bank funds by opening fictitious overdraft accounts in their names and the names of their relatives and other entities. </p>.<p>The ED subsequently launched a money-laundering probe into the case. It said the accused opened 50 fictitious overdraft accounts between 1997 and 2002 to misappropriate the bank’s funds. They also opened eight real-estate accounts and 165 housing-loan accounts to adjust the outstanding amount of those 50 fictitious accounts. They managed to close 40 of those 50 fictitious accounts. </p>.<p>The eight real-estate accounts, the 165 housing-loan accounts and the 10 overdraft accounts remain outstanding. Loans taken through these accounts amount to Rs 79.30 crore, including both principal and interest, and have been declared Non-Performing Assets (NPAs), details provided by the bank show. </p>.<p>According to the ED, the accused used these “illegally acquired” loans to buy eight acres of land at NS Palya, Begur hobli, Bannerghatta Road, South Bengaluru, in their names and in their relatives’ names. </p>.<p>The assets are proceeds of crime, the ED said. </p>
<p>The Enforcement Directorate has seized Rs 243.93 crore worth of assets allegedly bought by Amanath Co-operative Bank’s two former senior executives and their relatives with illegal loans. </p>.<p>The central agency said it took the action under the Prevention of Money Laundering Act, 2002, while investigating the fraud at the Bengaluru-headquartered scheduled bank. The senior executives in question are the bank’s former general manager Mohammed Asadulla and the former manager of the bank’s NR Road branch, Shafiulla. </p>.<p>The case started off with the registration of an FIR at the city’s Commercial State police station. The Criminal Investigation Department (CID) took over the case later and filed a charge sheet on May 5, 2006. Besides Asadulla and Shafiulla, the charge sheet named the bank’s then-accountant, K Hidayathulla. </p>.<p>The CID’s case is that the three accused had misappropriated Rs 68.43 crore of bank funds by opening fictitious overdraft accounts in their names and the names of their relatives and other entities. </p>.<p>The ED subsequently launched a money-laundering probe into the case. It said the accused opened 50 fictitious overdraft accounts between 1997 and 2002 to misappropriate the bank’s funds. They also opened eight real-estate accounts and 165 housing-loan accounts to adjust the outstanding amount of those 50 fictitious accounts. They managed to close 40 of those 50 fictitious accounts. </p>.<p>The eight real-estate accounts, the 165 housing-loan accounts and the 10 overdraft accounts remain outstanding. Loans taken through these accounts amount to Rs 79.30 crore, including both principal and interest, and have been declared Non-Performing Assets (NPAs), details provided by the bank show. </p>.<p>According to the ED, the accused used these “illegally acquired” loans to buy eight acres of land at NS Palya, Begur hobli, Bannerghatta Road, South Bengaluru, in their names and in their relatives’ names. </p>.<p>The assets are proceeds of crime, the ED said. </p>
