Hyderabad: The Directorate of Enforcement (ED), Hyderabad, attached land and buildings worth Rs 4.6 crore under the Prevention of Money Laundering Act (PMLA), 2002, of Sri Krishna Stockists and Traders Private Limited and its directors in a `528-crore bank fraud case. The market value of these properties is Rs 18.42 crore.
Based on cases registered by the CBI in connection with the bank fraud, the ED officials took up the case and probed it.
According to complaints lodged by banks, Sri Krishna Stockists and Traders Private Limited (SKSTPL) and Sri Krishna Agri Process India Pvt Ltd. (SKAIPL), through their directors, had borrowed large sums of loans by furnishing false and fabricated balance sheets, grossly inflated valuation reports of mortgaged assets, fabricated work estimates etc. The borrowed money of Rs 528.26 crore was diverted and the loan accounts became non-performing assets (NPA).
ED investigation revealed that SKSPL and SKAPIL, represented by their managing director, Thota Kanna Rao, had secured borrowed Rs 313 crore from IFCI, IDBI and Canara Bank during 2014-15.
The credit was availed towards construction of storage facility for preserving, processing and resale of agricultural produce, through mortgage of immovable properties and stocks which were highly inflated, in connivance with the employees of AP Industrial and Technical Consultancy Organisation Limited, Mitcon Consultancy and Engineering Services and V.C. Rammohan, then DGM of IFCI.
Kanna Rao also manipulated the records /books of accounts and managed to obtain fake work completion certificates and submitted the same to the financial creditor to justify the loans availed. Fund trail investigation by ED revealed that the said loan amounts were withdrawn in cash and laundered by the accused to purchase various land parcels.
