Ed accuses former Iob branch manager of, among other things, money laundering
The ED has charged a former Indian Overseas Bank branch manager and others in connection with a money laundering investigation in connection with an alleged multi-crore bank loan fraud that took place in Andhra Pradesh, the agency said on Wednesday.
A complaint was filed by the agency against Bhupathiraju Krishna Mohan Raju, Former Branch Manager of Indian Overseas Bank (IOB), Veerabadrapuram Branch (Prakasam District), Penmetsa Venkata Krishna Srinivasa Raju, then Panel Assessor for IOB , a company identified as PBR Poultry Tech, its managing partner Polepalli Venkat Prasad and PBR Agri Tech Private Ltd, before a special Prevention of Money Laundering Act (PMLA) court in Vishakhapatnam.
The court took cognizance of the indictment (complaint of the prosecution) on May 9, said the Directorate of Execution (ED) in a press release. The ED investigation relates to a case that arose out of a CBI FIR where it was alleged that PBR Poultry Tech received a term loan for the construction of a shed, the purchase of plants and machinery and working capital “in collusion” with BK Mohan Raju but “did not use the loan proceeds for the intended purpose.”
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“PBR Agri Tech Private Ltd (a sister company of PBR Poultry Tech Ltd) also received term loan and cash loan from Andhra Bank, Venkatraipuram, Tanuku for construction of sheds and purchase of factories and machinery, but did not repay the loan.”
“Polepalli Venkat Prasad in collusion with BK Mohan Raju also availed loans from the Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) on behalf of five of his relatives/acquaintances by submitting false documents and deceiving the bank,” the agency alleged.
Some of those loan funds were “diverted” to purchase real estate properties on behalf of PBR Poultry Tech partners, he said. “All the above loans were declared NPA (non-performing assets) by the banks and thus caused a total loss of Rs 17.27 crore (including interest) to the public sector bank,” the statement said. Ed.
(Edited by : Asmita pants)