KCC loan fraud: ED attaches Rebba Satyanarayana's assets worth Rs. 100 cr

Visakhapatnam: The Enforcement Directorate (ED) has provisionally attached assets worth Rs. 100 crore of Rebba Satyanarayana and his family for allegedly cheating IDBI bank by taking fraudulent Kisan Credit Card (KCC) loans.

The attached assets are in the form of agricultural lands, fish ponds, commercial sites, plots, and flats in Andhra Pradesh and Telangana and bank balance.

ED launched a money-laundering investigation based on an FIR registered by the ACB/CBI, Visakhapatnam, against Rebba Satyanarayana and others. They had fraudulently availed KCC fish tank loans in the names of 143 benami borrowers from IDBI's Rajahmundry branch to the tune of Rs. 112.41 crore.

Investigation revealed that Rebba Satyanarayana was the aggregator and end beneficiary of all the KCC loans sanctioned to the borrowers and that he had conspired with the officials of IDBI bank and others. He had availed loans worth Rs. 112.41 crore in the names of his family members, relatives, and acquaintances.

The KCC loans were first transferred to the borrowers' savings accounts (opened by Rebba Satyanarayana in their names) and later, most of the loan amounts were withdrawn and handed over to Rebba. He used the money to repay earlier loans availed by entities in his name or the name of his relatives or benamis; purchase properties in his name or names of relatives and benamis; invested in his export-import businesses that were either in his name or the names of his relatives or benamis.

The investigation also revealed that properties purchased by Rebba Satyanarayana were again used as mortgage to get other loans for other businesses that were either in his name or the name of his family members or employees. He was taking loans to repay old loans and diverting portions of the sanctioned loans to run his various benami ventures.

Further, it was also revealed that he had incorporated a foreign entity in New Jersey, USA, and exported seafood/cultured prawns worth more than $24,00,000 from his domestic entity to the foreign entity which is pending for export realization. This non-realization of the export is also suspect.