Bank Fraud Case: ED attaches worth Rs 2.42 crores assets under PMLA

By Samanth Lanka  Published on  20 Aug 2019 5:52 AM GMT
Bank Fraud Case: ED attaches worth Rs 2.42 crores assets under PMLA

Hyderabad: The Enforcement Directorate on Monday has attached 13 immovable properties that include agricultural lands and residential flats at Andhra Pradesh and Telangana worth Rs 2.42 crores of Ganne Srinivasa Rao and others under the Prevention of Money Laundering Act, 2002 (PMLA).

According to an official statement by ED, it has initiated investigations under PMLA on the basis of the Central Bureau of Investigation (CBI) charge sheet in a bank fraud by the accused. During investigation under PMLA, it is revealed that accused Ganne Srinivasa Rao during the period of 2010 to 2013 fraudulently availed housing and vehicle loans to the tune of Rs. 25.50 crore from various banks in his name and in the names of his relatives and employees by submitting fake/forged documents.

It is also revealed that for siphoning off the loan proceeds so availed, Ganne Srinivasa Rao opened bank accounts in the name of shell entities namely Durga Steels, Delta Ion Exchange Private Limited, Automotive Manufacturers Private Limited, Mahavir Motors Private Limited and Saravana Motors. The accused further floated fictitious entities viz., Saravana Industries, Subramanyam Industries, Sri Murugan Industries etc. in the names of his relatives and employees.

He has done this to avoid early detection by the banks and to layer the proceeds of crime and conceal them for personal benefit.

“The loans availed by Srinivasa Rao and his relatives/employees slipped into NPA with the total outstanding amount presently due to all the Banks pegged at ₹ 19.83 Crore. So far 13 immovable properties purchased at a value of Rs. 2.43 crores are identified and attached under PMLA. Earlier there was a seizure of one Fortuner and one Creta automobiles in June 2019. Further investigation is under progress,” said ED.

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