ED Seizes ₹18.33 Crore in Andhra Pradesh Bank Fraud Case
The Enforcement Directorate has seized assets worth ₹18.33 crore linked to a bank fraud involving Kallam Modern Rice Mills in Visakhapatnam.
Visakhapatnam, November 10 (Daily Kiran) : The Enforcement Directorate (ED) has temporarily seized assets valued at ₹18.33 crore related to Kallam Modern Rice Mills Private Limited and its owner, Kallam Perry Reddy, amid an ongoing investigation into alleged bank fraud. This action was taken following the submission of fake documents to secure loans from the State Bank of India (SBI).
The ED’s regional office in Visakhapatnam conducted the seizure under the provisions of the Prevention of Money Laundering Act, 2002. The agency stated that it initiated the investigation based on a complaint filed by the Central Bureau of Investigation (CBI) and the Economic Offences Wing (EOW) in Chennai, which cited fraudulent activities linked to Kallam Modern Rice Mills and several associated entities.
Between 2010 and 2013, the group reportedly obtained a loan facility of ₹24.57 crore from the SBI’s Guntur branch by presenting forged ownership documents for mortgaged properties. This fraudulent activity resulted in a loss of ₹18.33 crore to the bank.
Investigators discovered that Kallam Perry Reddy operated approximately 26 entities under the names of relatives, employees, and associates, including three borrower companies: Kallam Rice Mills Private Limited, Sri Rambrahma Modern Rice Mills Private Limited, and Sri Vinayaka Traders.
Analysis of bank accounts revealed that around ₹23.81 crore was withdrawn from the accounts of the three borrower companies, with transactions linked to employees, accountants, and Kallam Perry Reddy himself. Further investigations indicated that several assets were purchased using funds acquired through these loans, with some properties transferred to relatives and associates without any sales value. Although these individuals appeared as nominal owners, Kallam Perry Reddy remained the actual beneficial owner.
As a result, the ED has seized 50 properties in Andhra Pradesh and Telangana valued at ₹16.88 crore and five flats worth ₹1.45 crore, marking a significant step in the ongoing investigation. The agency confirmed that further inquiries are underway.
