THE Enforcement Directorate (ED) said onSaturday thatit carried out searches at six locations in Andhra PradeshandTelangana in connection with its ongoing probe into the fraud in sanction of loans under Kisan CreditCard (KCC)tofarmersforconstruction of fish tanks. The ED said thatit carried out the searches on Wednesday under the provisions of  Prevention of Money Laundering Act (PMLA) attheresidences and office premises of loan aggregators, whichresultedintherecovery andseizure of digital devices and incriminating documents, revealingnumerous immovable andmovablepropertiesacquired from the proceeds of crime.

 

The ED caseisbasedonanFIR registered by the CBI under various sectionsofthe IndianPenal Code (IPC) and Prevention of Corruption Act (PC Act), alleging large-scale fraud at IDBI Bank,RajahmundryBranch,East Godavari District in Andhra Pradesh,in connection with processing and sanctioningof shor tterm loans or KCC to farmers involved in fish farming or pisciculture forthe construction of fish tanks.

 

The financial probe agency said, “ED probe found that the accused persons took KYC documents,blankchequesetc.from theiremployees,knownpersons, farmers etc. on the pretext of salary payment through banking channels, medical reimbursement, provident fund, etc. “On the basis of these documents, they took loans in their names to the tune of Rs 311.05 crore in connivance with bank officials and valuers. The loan amounts credited into the accounts of workers, farmers, etc. were transferred to the accused persons’ accounts and in many cases, the entire loan amountwaswithdrawnincash.”