ED attaches assets worth ₹18 crore linked to rice mill loan fraud case

VISAKHAPATNAM Officials from the Directorate of Enforcement (ED), Visakhapatnam Sub-Zonal Office, have provisionally attached immovable properties worth ₹18.33 crore of K. Peri Reddy and his family members/associates in the case of Kallam Modern Rice Mills Private Limited and others, under the provisions of Prevention of Money Laundering Act, 2002.

The ED investigation was initiated on the basis of an FIR registered by CBI, Chennai, on the complaint of State Bank of India (erstwhile State Bank of Hyderabad), Guntur, against Kallam Modern Rice Mills Private Limited, Sri Ramabrahma Modern Rice Mills Private Limited, M/s. Sri Vinayaka Traders and others.

During 2010-2013 the group obtained credit facilities of ₹24.57 crore from SBH, Arundelpet branch in Guntur, by submitting fake/forged title deeds of collateral properties and diverted the funds, causing a loss of ₹18.33 crore to the bank. Investigation revealed that K.