ED Attaches Properties worth Rs.18.33 Cr in AP, Telangana in Rice Mill Case
The ED has provisionally attached 50 immovable properties valued at Rs.16.38 crore and five flats valued at Rs.1.45 crore, totalling Rs.18.33 crore, located in Andhra Pradesh and Telangana
Hyderabad: The Visakhapatnam Sub-Zonal office of Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs 18.33 crore of Kallam Peri Reddy and his family members and associates in the case of Kallam Modern Rice Mills Private Limited and other, under the provisions of Prevention of Money Laundering Act, 2002. The properties were attached in Andhra Pradesh and Telangana.
The ED investigation was initiated on the basis of FIR registered by CBI, EOW, Chennai on the complaint of State Bank of India (erstwhile State Banik of Hyderabad), Guntur against Kallam Modern Rice Mills Private Ltd, Ramabrahma Modern Rice Mills Private Ltd, Sri Vinayaka Traders and others.
During 2010-2013 the group obtained credit facilities of Rs.24.57 crore from SBH, Arundelpet Branch, Guntur by submitting forged title deeds of collateral properties and diverted the funds, causing a loss of Rs 18.33 crore to the bank.
The investigation has revealed that Peri Reddy operated and managed about 26 entities registered in the names of his relatives, employees and associate, including the three borrower concerns namely Kallam Modern Rice Mills Private Ltd, Sri Ramabrahma Modern Rice Mills and Sri Vinayaka Traders.
Analysis of bank accounts revealed that cash of about Rs.23 81 crore was withdrawn from the cash credit accounts of the three borrower concerns in the names of workers, accountants and Peri Reddy himself.
Further investigation has revealed that several properties were purchased out of the loan proceeds, partly in cash withdrawn from bank accounts controlled by Peri Reddy. It is also revealed that Peri Reddy had transferred some immovable properties to his relatives and associates without receiving any sale consideration. The said properties were only held by them as namesake owners, while he continued to be the actual beneficial owner.
Accordingly, the ED has provisionally attached 50 immovable properties valued at Rs.16.38 crore and five flats valued at Rs.1.45 crore, totalling Rs.18.33 crore, located in Andhra Pradesh and Telangana, as Proceeds of Crime under PMLA, 2002 or as equivalent value thereof. Further investigation is under progress.
