ED attaches 47 properties in false Kisan loan probe

HYDERABAD: The Enforcement Directorate (ED) on Monday attached 47 immovable assets worth Rs 20.31 crore owned by Mada Subrahmanyam, Mada Srinivasa Rao, Ganduri Mallikharjuna Rao, Eluri Prasada Rao, their family members, and companies for allegedly obtaining fraudulent loans from IDBI Bank’s Guntur branch.

The investigation, under the Prevention of Money Laundering Act, 2002, was started based on four FIRs registered by the Central Bureau of Investigation and Anti-Corruption Bureau’s Hyderabad and Visakhapatnam branches. 

An ED official alleged that the four main accused conspired with the then manager of the bank, Chandra Sekhar Harish, to fraudulently avail of Kisan Credit Card loans totalling Rs 57.1 crore, for fish farming, in the names of 247 borrowers, who were relatives, employees and other acquaintances, by furnishing their properties as collateral securities.

They purchased immovable properties with the funds and registered them in others’ names.