Hyderabad, Nov. 10: The Enforcement Directorate (ED) has attached immovable properties worth Rs 18.33 crore in the Kallam Modern Rice Mills bank loan fraud case.
The properties are located in Andhra Pradesh and Telangana. The action was taken under the Prevention of Money Laundering Act (PMLA).
The ED action targets properties linked to Kallam Peri Reddy, his family members and associates. Investigators allege that the assets were acquired using funds obtained through bank loans.
Kallam Modern Rice Mills Loan Fraud Investigation
According to the ED, the group of companies obtained loans worth Rs 24.57 crore from the State Bank of Hyderabad (SBH) between 2010 and 2013. Kallam Modern Rice Mills was reportedly offered as collateral.
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The investigation found that loans were obtained in the names of Kallam Modern Rice Mills, Sri Ramabrahma Modern Rice Mills and Sri Vinayaka Traders.
Officials also found that around 26 companies were operated in the names of relatives, employees and associates.
The ED said Rs 23.81 crore was withdrawn from the cash credit accounts of the three companies. The withdrawals were allegedly made in the names of workers, accountants and Kallam Peri Reddy.
Investigators further found that several immovable properties were purchased using the loan funds. These properties were allegedly transferred to relatives and associates without payment.
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According to the ED, the relatives were only nominal owners, while Kallam Peri Reddy was the actual beneficiary.
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