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In connection with the case of fraudulent loans, the Enforcement Directorate (ED) has provisionally attached immovable assets worth 20.31 crore belonging to accused Mada Subrahmanyam, Mada Srinivasa Rao, Ganduri Mallikharjuna Rao, Eluri Prasada Rao, their family members, and firms under the money laundering act. They had received a loan from the Guntur branch of IDBI Bank.
The inquiry was launched in response to four FIRs filed by the Central Bureau of Investigation (CBI), Anti Corruption Branch, Visakhapatnam and Hyderabad, against these persons and others for illegally obtaining IDBI Bank Kisan Credit Card (KCC) loans for fish farming.
According to investigations, Mada Subrahmanyam, Mada Srinivasa Rao, Ganduri Mallikharjuna Rao, and Eluri Prasada Rao conspired with Chandra Sekhar Harish Chennappagari, the then manager of IDBI Bank, Guntur branch, to fraudulently obtain Kisan Credit Card loans totaling 57.10 crore from IDBI Bank for fish farming.
It was done in the names of 247 borrowers, who were family members, employees, and people they knew, by using their properties as collateral securities and misappropriating the loans granted to them.
The investigation also found that the aforementioned aggregators used a portion of the proceeds of the crime – loan amounts sanctioned to the borrowers – to purchase various immovable properties in their names and the names of other people known to them.