The businessman is is being probed for money laundering linked to alleged fraud against an IDBI branch in AP
The Enforcement Directorate has provisionally attached movable and immovable assets worth ₹ 100 crore belonging to businessman Rebba Satyanarayana and his family members under the Prevention of Money Laundering Act (PMLA).
He took new loans to repay old ones and is being probed for money laundering linked to alleged fraud against an IDBI branch in Andhra Pradesh by taking fraudulent fish tank 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.
The ED initiated the money-laundering investigation on the basis of FIR registered by ACB/CBI, Visakhapatnam, under relevant Sections of IPC against Satyanarayana and others for fraudulently availing KCC fish tank loans in the names of 143 benami borrowers from IDBI Bank, Rajahmundry branch to the tune of ₹ 112.41 crore.
Investigation under PMLA revealed that 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 & others; and had availed the loans in the names of his family members, relatives and acquaintances to ₹112.41 crore.
The KCC Loan amounts were first transferred to the Borrowers’ Savings Accounts (opened by Satyanarayana in their names) and later on, most of the loan amount was withdrawn in cash and handed over to Satyanarayana which he utilised for repayment of earlier loans availed by entities in his/relatives/benami names but controlled by him only, purchase of properties in the names of himself/relatives as well as in benami names and investment in his other export-import businesses being run in the name of himself/relatives/benami.
Further investigation revealed that properties purchased by Satyanarayana in his/relatives/benami names were again used to mortgage for getting other loans in their other business entities in the name of himself/others/family members/employees.
He is a ‘habitual offender’ who is taking cyclical loans to repay old loans and divert portions of the sanctioned loans to run his various benami ventures, ED officials said.
Satyanarayana indulged habitually and continuously in fraudulently availing loans from banks by pledging/mortgaging properties and for repayment of the same, either he used to avail fresh loans or used to settle said loan under OTS. 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 said foreign entity, which is pending export realisation. “This non-realisation of the export is also suspected,” they said.
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