**Mumbai: Enforcement Directorate Probes Rs 152 Crore Bank Fraud Involving Farmers’ Loan Accounts**
The Enforcement Directorate (ED) has carried out searches at eight locations across Nagpur and Bhandara in Maharashtra, and Guntur in Andhra Pradesh, as part of an extensive money-laundering investigation. The probe targets Ramana Rao Bolla, Nutan Rakesh Singh, and their associates in connection with an alleged bank fraud amounting to over Rs 152 crore.
Both Bolla and Singh were earlier arrested by the Nagpur police and are currently in judicial custody.
### Modus Operandi: Fraudulent Loan Sanctions Using Farmers’ Documents
According to the central agency, two syndicates operated with an identical modus operandi. They fraudulently obtained Aadhaar cards and other documents from unsuspecting farmers under the pretext of helping them open bank accounts to receive government crop compensation.
Using these documents, the accused opened 212 bank accounts in farmers’ names, securing loans ranging from Rs 49 lakh to Rs 50 lakh each. The funds were allegedly siphoned off for personal gain, pushing the accounts into default and causing significant losses to the bank.
### Search Operations and Seizures
The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. During these operations, the ED seized cash worth Rs 10 lakh, property papers, digital devices, and voluminous incriminating documents. Additionally, movable assets including bank balances and insurance policies were frozen. Investigators also identified immovable properties valued at over Rs 100 crore.
### Background of the Investigation
The ED’s probe is based on FIRs registered by the Maharashtra Police against Bolla, Singh, and their associates for defrauding the then Corporation Bank (now Union Bank) and multiple farmers to the tune of Rs 152.90 crore. The FIRs were filed after the fraudulent activities were detected by the bank in 2017, when loans were found to have been sanctioned in the names of unaware farmers and subsequently misappropriated.
### Details of the Fraudulent Scheme
Ramana Rao Bolla and his associates fraudulently obtained Aadhaar cards and other documents from farmers under the pretext of helping them open bank accounts necessary for receiving crop failure compensation under a government scheme.
In conspiracy with Sandeep Revnath Jangale, then Assistant Manager of the Umarkhed branch of Corporation Bank, they opened 158 bank accounts in farmers’ names and sanctioned loans ranging from Rs 49 lakh to Rs 50 lakh per account.
Bolla allegedly took signatures from the farmers and retained the cheques. Loans were then applied for against grain mortgaged in the farmers’ warehouses using forged documents. These loans were subsequently sanctioned. The amounts were diverted to 24 different accounts, with Bolla acting as the guarantor.
The accused siphoned off the funds, turning the accounts into non-performing assets (NPA), causing a total loss of Rs 113 crore to the bank.
### Parallel Syndicate Operation
Similarly, a syndicate led by Nutan Rakesh Singh followed the same modus operandi, involving the Umarkhed branch of Corporation Bank, the same assistant manager Jangale, and other officials. They secured loans totaling Rs 25.07 crore in the names of 54 farmers. Singh acted as guarantor and later diverted the funds, resulting in a total loss of Rs 39.43 crore.
### Use of Misappropriated Funds
The ED claims the misappropriated funds were used by Bolla and Singh to purchase properties in their names, their family members’ names, and in the names of entities controlled by them. Some funds were also allegedly used to repay previous loans under other entities.
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https://www.freepressjournal.in/mumbai/farmers-identities-exploited-in-152-crore-bank-scam-ed-uncovers-over-100-crore-assets-across-maharashtra-and-andhra-pradesh