Bank fraud: ED charge sheets ex IOB branch manager, others for money laundering

The ED has charge sheeted a former branch manager of the Indian Overseas Bank and others in connection with a money laundering probe linked to an alleged multi-crore bank loan fraud case that took place in Andhra Pradesh, the agency said on Wednesday.

A prosecution complaint has been filed by the agency against Bhupathiraju Krishna Mohan Raju, ex-branch manager of the Indian Overseas Bank (IOB), Veerabadrapuram branch (Prakasam district), Penmetsa Venkata Krishna Srinivasa Raju, the then panel valuer for IOB, a firm identified as 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 cognisance of the charge sheet (prosecution complaint) on May 9, the Enforcement Directorate (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 machineries and working capital "in connivance” with B K Mohan Raju but "did not utilise 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 machineries 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 the 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 (non performing 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.