Rs 17 Cr Indian Overseas Bank fraud: ED charge-sheets former branch manager, others

Vijayawada: Enforcement Directorate (ED) has charge-sheeted a former branch manager of the Indian Overseas Bank and others in an alleged multi-crore loan fraud case in Andhra Pradesh.

A prosecution complaint has been filed against Bhupathiraju Krishna Mohan Raju, ex-branch manager of the Indian Overseas Bank (IOB), Veerabhadrapuram branch (Prakasam district); Penmetsa Venkata Krishna Srinivasa Raju, the then IOB panel valuer; PBR Poultry Tech, its managing partner Polepalli Venkat Prasad and PBR Agri Tech Private Ltd, before a special Prevention of Money Laundering Act (PMLA) court in Vishakhapatnam.

"The court has taken cognizance of the charge sheet (prosecution complaint) on May 9," the ED said in a statement.

The ED investigation pertains to a case that stems from a CBI FIR where it was alleged that PBR Poultry Tech availed term loan for construction of shed, purchase of plant and machinery, and working capital "in connivance" with B K Mohan Raju but "did not utilize the loan proceeds for the intended purpose."

"PBR Agri Tech Private Ltd (a sister concern of PBR Poultry Tech Ltd) also availed term loan and cash credit loan from Andhra Bank, Venkatraipuram, Tanuku for construction of sheds and purchase of plant and machinery but did not repay the loan. Polepalli Venkat Prasad, in connivance with B K Mohan Raju also availed credit guarantee fund trust for micro and small enterprises (CGTMSE) loans in the names of five of his relatives/acquaintances by submitting fake documents and cheated the bank," the agency alleged.

Some of these loan funds were "diverted" for purchasing immovable properties in the name of partners of PBR Poultry Tech, it said.

"All the above loans were declared NPA (nonperforming asset) by the banks and thereby caused a total loss of Rs 17.27 crore (including interest) to the public sector bank," the ED said.