Visakhapatnam: The Enforcement Directorate (ED) on 30 March filed prosecution complaints in Visakhapatnam special court in connection with two separate cases.
In the first case, the ED filed a prosecution complaint before the Prevention of Money laundering (PMLA) Special Court in Visakhapatnam against Mohammed Aleem, the proprietor of Aleem Rice Mill in Krishna district, who had defrauded the United Bank of India to the extent of Rs. 1.12 crore.
The ED initiated an investigation on the basis of an FIR registered by the Andhra Pradesh police against Mohammed Aleem. The investigation revealed that Aleem had purchased paddy from farmers and brokers and stored them in his godown. He had then mortgaged the rice kept at the godown to Star Agriwarehousing Collateral Management Ltd. which had issued storage receipts for the stock.
Based on the storage receipts issued by Star Agriwarehousing, Aleem had obtained a loan of Rs. 2 crore (repayable within 12 months) from the United Bank of India, Vijayawada. However, Aleem, in collusion with the supervisor of the godown, had illegally lifted stock from the godown without the written permission of the bank.
He sold the stock in the open market and appropriated the sale proceeds. He exhausted all the funds for his personal benefit thereby causing a loss to the tune of Rs. 1.12 crore to the bank. The ED completed its investigation and filed the prosecution complaint on 30 March. Trial will be held in the PMLA Special Court.
Meanwhile, the ED has filed a prosecution complaint against Dharavathu Sakru, a former employee of the Life Insurance Corporation, for misappropriation of LIC funds to the extent of Rs. 1.82 crore before the special court at Visakhapatnam.
The ED initiated investigation on the basis of an FIR registered by the Andhra Pradesh police. During the course of the investigation, it was found that another FIR was registered in 2014 against D. Sakru and others by the Central Bureau of Investigation, Visakhapatnam, for misappropriation of LIC funds to the extent of Rs. 77 lakh. Collectively Sakru had defrauded LIC to the tune of Rs. 1.82 crore.
The investigation also revealed that Sakru was working as a higher grade assistant in the Life Insurance Corporation of India, Jaggaiahpet branch. He had hatched a conspiracy to siphon off LIC funds. Between 2002 and 2013, he had misused his privileges and illegally issued cheques and Demand Drafts fraudulently in the names of his acquaintances and transferred LIC funds to their accounts and subsequently collected these amounts from the account holders.
He layered the proceeds of crime into multiple accounts to avoid detection. The funds so diverted, were either used by him to settle his pending dues of the chilli trade or directly withdrawn in cash. In total, he had illegally collected Rs. 1.82 crore. ED has trailed the fund transfers and their withdrawal and recorded the statement of all the bank account holders. It has completed the investigation and filed a prosecution complaint. Trial proceedings will be held in the PMLA Special Court.