Hyderabad: Enforcement Directorate Hyderabad unit on Tuesday provisionally attached assets worth Rs 52 crore in an IDBI Pisciculture Loan Fraud case of Vishakhapatnam. The attached assets belong to the prime accused Kumar Pappu Singh who acted as an aggregator and obtained loans in the names of 87 marginal farmers for doing his fishing and poultry business. The accused took loans worth 70 Crore fraudulently from the IDBI bank. ED identified the proceed of crime and found that Kumar Pappu Singh utilized the money for personal investments. Singh acquired properties in his name and the name of his companies. He also used the money for his poultry and fish farming business. He failed miserably in both the business.
CBI Booked FIR against him based on the complaint of IDBI Bank. ED has attached house sites, fish tanks and poultry farms worth Rs. 35.70 crores. ED also attached available cash balances in various bank accounts of Kumar Pappu Singh and the dummy borrowers with IDBI bank worth Rs 15.7 crore.
CBI Booked the FIR on March 27 in 2018 under criminal conspiracy, cheating, forgery and criminal misconduct based on the complaint filed by Prafull Kumar Behera working as General Manager and Senior Regional Head of IDBI Bank Vishakapatnam regional office.
CBI alleged that the then IDBI CGM R Damodaran and then DGM Battu Rama Rao entered into a criminal conspiracy with aggregators identified as Kumar Pappu Singh, Kusumpudi Pullamraju, VVSKDN Somarju alias Airtel Somaraju, Vanapalli Venkateswar Ro and Jonnala Jaganmohan Rao. The accused officials enchanted the limit of Rs 5 crore though the maximum limit of KCC loans was only Rs 25 lakhs without approval from the competent authority.
Pappu Singh created documents by showing falsely that such tanks were in existence in the name of the borrowers. He got various loan application processed and sanctioned. Loans were sanctioned in the name of 101 persons from 2009 to 2012 to the tune of Rs 161 crore.
Pappu Singh son of Kapil Deo Singh is a native of Sangaulavari street in Tanuku of West Godavari district.