What Did the ED Discover in the Bank Fraud Case Involving Rs 100 Crore?
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Synopsis
The Enforcement Directorate has made significant progress in a bank fraud case, uncovering properties worth over Rs 100 crore linked to Ramana Rao Bolla and Nutan Rakesh Singh. Their fraudulent activities have affected many unsuspecting farmers and raised serious questions about banking regulations. Stay tuned to find out more about this intricate case.
Key Takeaways
- The ED has conducted searches related to a major bank fraud case.
- Properties worth over Rs 100 crore have been identified.
- The fraud impacted both the Corporation Bank and many farmers.
- Further investigations by the ED are in progress.
- Public trust in the banking system needs to be restored.
New Delhi, Oct 1 (NationPress) The Enforcement Directorate (ED) in Nagpur has executed search operations at eight different sites within Nagpur and Bhandara districts of Maharashtra, as well as in Guntur district of Andhra Pradesh. These actions were carried out under the Prevention of Money Laundering Act (PMLA), 2002, in connection with Ramana Rao Bolla, Nutan Rakesh Singh, and their affiliates, according to an official statement released on Wednesday.
The searches, conducted on September 26, 2025, resulted in the recovery of a large number of incriminating documents, property papers, digital devices, and cash amounting to Rs 10 lakh. Additionally, the ED froze several movable assets, including bank balances and insurance policies, while identifying immovable properties valued at over Rs 100 crore.
The ED began its investigation based on FIRs filed by Maharashtra Police against Ramana Rao Bolla, Nutan Rakesh Singh, and others for committing fraud against the former Corporation Bank (now Union Bank) and unsuspecting farmers.
According to the agency, the alleged fraud totaled Rs 152.90 crore, adversely affecting both the bank and the farmers involved.
The investigation revealed that Ramana Rao Bolla and his associates deceitfully acquired Aadhar cards and other documents from various farmers, promising assistance in opening necessary bank accounts to receive compensation for crop failures under a government scheme.
“In collusion with Sandeep Revnath Jangale, the then Assistant Manager of the Umarkhed Branch of Corporation Bank, they opened bank accounts in the names of 158 naive farmers, obtaining loan approvals ranging from Rs 49.00 lakh to Rs 50.00 lakh for each account, with Ramana Rao acting as the guarantor,” the agency stated.
Subsequently, Ramana Rao and his associates misappropriated the loan amounts for personal use, leading to these accounts becoming non-performing assets (NPA) and causing a loss of Rs 113 crore to the bank.
Similarly, another group led by Nutan Rakesh Singh, using a comparable strategy in collusion with the same Assistant Manager and other bank officials, secured loans totaling Rs 25.07 crore in the names of 54 unsuspecting farmers, with Nutan serving as the guarantor.
This resulted in a total loss of Rs 39.43 crore to Corporation Bank (including Rs 23.03 crore principal and Rs 16.40 crore interest).
Investigations have shown that both Ramana Bolla and Nutan Rakesh Singh used the fraudulently obtained funds to acquire properties under their names, as well as in the names of family members and entities they control.
Furthermore, these loan amounts were also utilized to settle past debts incurred under their other entities.
The ED has confirmed that further investigations are ongoing.
Point of View
It is crucial to highlight the systemic failures that allowed such a widespread fraud to occur. The investigation by the ED serves as a reminder of the need for stringent measures to protect innocent individuals and ensure accountability within the banking sector. The continued scrutiny of these cases is essential for restoring public trust.
NationPress
01/10/2025
Frequently Asked Questions
What prompted the ED's investigation into this case?
The investigation was initiated based on FIRs filed by Maharashtra Police concerning fraudulent activities linked to Ramana Rao Bolla and Nutan Rakesh Singh.
How much money was reportedly involved in the fraud?
The alleged fraud amounts to Rs 152.90 crore, with significant losses incurred by both the Corporation Bank and the affected farmers.
What actions did the ED take during the raids?
The ED seized incriminating documents, cash of Rs 10 lakh, and identified immovable properties worth over Rs 100 crore during their raids.
What was the modus operandi of the accused?
The accused obtained Aadhar cards from farmers under false pretenses, promising assistance with bank accounts to access government compensation.
What is the current status of the investigation?
The ED has confirmed that further investigations are ongoing to unravel the full extent of the fraud.
