What Led to the ED Attaching Rs 2.22 Crore in a Money Laundering Case in Vizag?
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Synopsis
In a significant move, the ED has provisionally seized assets worth Rs 2.22 crore in Visakhapatnam linked to a fraudulent loan scheme. This case highlights the misuse of Kisan Credit Card loans involving major players in the financial sector. Stay tuned as we unfold the details of this intriguing investigation.
Key Takeaways
- ED's provisional attachment of assets worth Rs 2.22 crore.
- Involvement of Canara Bank in fraudulent loan schemes.
- Key individuals implicated in the case.
- Significant financial sums misappropriated.
- Ongoing investigations to uncover further details.
Visakhapatnam, Sep 3 (NationPress) - The Directorate of Enforcement (ED) has provisionally attached assets worth Rs 2.22 crore under the Prevention of Money Laundering Act (PMLA) due to a fraudulent scheme involving the Canara Bank, Kancharapalem branch in Visakhapatnam, where Kisan Credit Card Fish Tank loans were misused.
The assets seized by the Visakhapatnam Sub-Zonal Office comprise immovable properties valued at Rs 2.20 crore and movable assets worth Rs 1.36 lakh.
These properties are registered under Dodla Venkata Krishna Kumar and his spouse Dodla Suneetha, encompassing a residential flat, land plots, and bank balances. Kumar had exploited the KCC Fish Tank loan amount accessed by borrowers Devasani Nirmala, Adari Chandrakala, and Kovvuri Srinivas for personal and business gains.
The central agency commenced its inquiry based on an FIR filed by the CID, Headquarters PS, Mangalagiri, Andhra Pradesh, under various sections of the Indian Penal Code (IPC) against the aforementioned individuals and others.
The FIR and chargesheet claimed that Kovvuri Srinivas and Adari Chandrakala secured Kisan Credit Card (fish) loans amounting to Rs 80 lakh and Rs 2.50 crore, respectively, by presenting fraudulent lease agreements and passbooks. Additionally, Devasani Nirmala also availed a Kisan Credit Card (fish) loan of Rs 2.20 crore and failed to repay these loans.
The ED's investigation disclosed that Kumar appropriated Rs 4.57 crore out of the Rs 5.50 crore KCC Fish Tank loan that was allocated to the three borrowers, establishing him as the ultimate beneficiary.
The sanctioned loan amounts were withdrawn in cash, redirected from the borrowers' accounts to the accounts of Kumar's friends and relatives, and utilized for Kumar's personal and business purposes.
Part of the proceeds from these illicit activities was utilized by Kumar for acquiring immovable assets in his wife's name, Dodla Suneetha.
Further investigations are ongoing.
Point of View
This incident underscores the importance of vigilance in the banking sector. The misuse of financial instruments not only impacts the institutions involved but also the broader economy. As we navigate through these challenges, a robust regulatory framework is essential to prevent such fraudulent activities in the future.
NationPress
03/09/2025
Frequently Asked Questions
What is the basis for the ED's action?
The ED's action is based on a case involving fraudulent Kisan Credit Card Fish Tank loans associated with Canara Bank, leading to a provisional attachment of assets under the PMLA.
Who are the main individuals involved?
Key individuals include Dodla Venkata Krishna Kumar, his wife Dodla Suneetha, and borrowers Devasani Nirmala, Adari Chandrakala, and Kovvuri Srinivas.
What were the amounts involved in the loans?
The loans involved include Rs 80 lakh, Rs 2.50 crore, and Rs 2.20 crore, all of which were obtained through fraudulent means.
What does the investigation reveal?
The investigation reveals that Kumar misappropriated funds from the loans for personal and business use, highlighting a significant breach of trust.
What actions are being taken next?
The ED continues to investigate the matter, focusing on uncovering the full extent of the fraud and the assets involved.
