VISAKHAPATNAM: The
enforcement directorate (ED) has provisionally attached movable and immovable
assets
worth Rs 51.45 crore belonging to Kumar
Pappu Singh, his family members and his firms under the Prevention of Money Laundering Act (PMLA, 2002) in a case where he is alleged to have obtained loans fraudulently from IDBI Bank, Visakhapatnam.
The attached properties include house sites, fish tanks and poultry farms worth Rs 35.7 crore, bank balance held in the name of Kumar Pappu Singh and other items worth Rs 15.73 crore.
An investigation was initiated under PMLA on the basis of an FIR registered under sections 120B, 420, 468 read with 471 of the
Indian Penal Code
, 1860 and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 by CBI, Anti-Corruption Branch, Visakhapatnam against Kumar Pappu Singh and others for fraudulently availing Kisan Credit Card (KCC) loans from IDBI Bank for fish farming.
Investigation revealed that Pappu Singh had availed KCC loans in the name of 87 borrowers who were his family members, employees and acquaintances from IDBI Bank by listing his properties as collateral securities and misappropriated the loans sanctioned to borrowers.
The loan amounts which were sanctioned to the borrowers were diverted from their bank accounts to Singh’s savings account and bank accounts of his firms.
His residence and offices were raided on July 16 this year and several documents were recovered.
The total loan amount of Rs 69.46 crore was reportedly used to fund his poultry and fish farming business as well as to acquire property.
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