New Delhi, Jan 1, 2020-
The Enforcement Directorate (ED) has attached Rs 51.43 crore assets of Kumar Pappu Singh, a businessman, his family members and firms controlled by him in IDBI Fish Farming Loan Fraud case, the agency said on Wednesday.
The properties attached under Prevention of Money Laundering Act (PMLA) include house sites, fish tanks and poultry farms worth Rs 35.70 crore, and balances in bank accounts held in the name of Singh and other borrowers with IDBI Bank amounting to Rs 15.73 crore.
Investigation was initiated under PMLA on the basis of First Information Report (FIR) registered under sections criminal conspiracy, cheating and forgery of the Indian Penal Code and the Prevention of Corruption Act by the Central Bureau of Investigation (CBI) and Anti Corruption Branch, Visakhapatnam against Officials of IDBI Bank and various loan aggregators and others for fraudulently availing Kisan Credit Card (KCC) loans from the bank for fish farming.
Among accused aggregators in the CBI FIR, Singh is the largest loan aggregator whose loan had become NPA and he was classified as fraud.
Investigation under PMLA revealed that Singh had fraudulently availed KCC loans in the names of 87 borrowers who were his family members, employees and persons known to him by giving his properties as collateral securities and misappropriated the loans sanctioned to the borrowers, the ED said.
“The loan amounts were illegally diverted from the bank accounts of the borrowers to the bank accounts of Kumar Pappu Singh and his firms,” the ED added.
Search was conducted at the residential and business premises of Singh and several incriminating documents were recovered and seized, the ED said.
The agency said a total loan amount of Rs 69.46 crore sanctioned to the small farmers was illegally aggregated and diverted by the accused for making personal investments, acquiring properties in his name and in the names of his companies and also for his existing poultry and new fish farming businesses.
“These properties were acquired by Kumar Pappu Singh out of proceeds of crime, his other properties along with the amounts lying in his bank account and in the bank accounts of other borrowers have been attached. Further investigation is under progress.” (Agency)
