India’s Enforcement Directorate (ED) has filed a Prosecution Complaint against Polepalli Venkat Prasad, PBR Poultry Tech Limited, PBR Agri Tech Private Limited, Bhupathiraju Krishna Mohan Raju, and others under the country’s AML/CFT law in a case related to a multi-million-dollar bank fraud.
As per ED’s investigation, PBR Poultry Tech had conspired with Raju to secure a term loan. The loan was purportedly meant for the construction of a shed and the purchase of machinery and working capital. However, once the loan was granted, the company did not utilize the funds for the intended purpose. Moreover, PBR Agri Tech Private Limited, a subsidiary of PBR Poultry Tech, also availed both a term loan and a cash credit loan from Andhra Bank citing the same intended purpose. However, in this case, the company did not repay the loans.
Prasad further conspired with Raju, who was the Branch Manager of Indian Overseas Bank’s Veerabadrapuram Branch at the time, to obtain Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Loans on behalf of five relatives/acquaintances by submitting fake documents. A fraction of these loans was used to purchase immovable properties on behalf of various partners PBR Poultry Tech. The banks declared all these loans as non-performing assets (NPA). This resulted in a loss of ₹172.7 million ($2.23m) to the public sector bank.
As part of this case, ED has already attached properties worth of ₹75.7 million ($980,000) belonging to Prasad and others.
Source: Enforcement Directorate, India
