The Enforcement Directorate (ED) has attached 21 immovable properties in connection with a bank fraud case involving PBR Poultry Tech and others.
The properties worth ₹7.57 crore on paper were held in the name of accused Polepalli Venkata Prasand and his family members. The attachment order also includes deposits of ₹50 lakh with the Meliora Asset Reconstruction Company.
The attached immovable assets are located in West Godavari district of Andhra Pradesh.
The ED initiated the money laundering probe based on an FIR registered by the CBI against Mr. Prasad, then managing partner of PBR Poultry Tech, and other partners. It is alleged that they cheated Indian Overseas Bank of ₹ 7.34 crore.
PBR Poultry Tech had taken a term loan of ₹5.60 crore from the bank by grossly inflating the value of the mortgaged properties in collusion with panel advocates, as alleged.
The ED alleges that Mr. Prasad also got ₹1.74 crore in Credit Guarantee Fund Trust for Micro & Small Enterprises loans, in the name of his associates.
The loan amounts were diverted by the accused persons and not repaid to the bank.
When the accused could not get more loan, they set up another shell entity, PBR Agritech Private Limited, for the purpose. They secured a term loan of ₹6.73 crore and cash credit of ₹3.2 crore in the shell company’s name from Andhra Bank.
Value of assets again inflated
According to the ED, the value of the mortgaged assets were again inflated.
“These loans were taken on the pretext of construction of a poultry shed, but instead the money was siphoned off and diverted to the main accused, who used it to introduce share capital and machinery in PBR Poultry Tech”, said an official.
The Andhra Bank loan has also become a non-performing asset.
The accused are trying to use the concealed proceeds of crime to buy back their mortgaged properties at lower rates by doing private deals with the asset reconstruction firm, said the ED.
