Hyderabad: Directorate of Enforcement (Hyderabad zonal office) has provisionally attached four immovable properties valued at 2.9 crore under the Prevention of Money Laundering Act (PMLA), in connection with a bank fraud case allegedly perpetrated by one Subbaiah Korrapati. The attached properties are in the form of agricultural land, residential plots and a commercial property in the name of associates of Subbaiah Korrapati.ED had initiated an investigation based on an FIR of CBI of 2020. As per the FIR, Subbaiah fraudulently availed credit facilities amounting to 10 crore from Syndicate Bank, Chandanagar branch, by submitting forged sub-contract agreements and non-existent work orders.ACB had filed a chargesheet in 2023 before the XXI ACMM-cum-special JMFC for trial of CBI cases, Hyderabad. As per the chargesheet, Subbaiah, in connivance with others, deliberately submitted forged property documents as collateral to avail credit facilities to the tune of 12.30 crore, defaulted on repayment, and thereby cheated the bank, causing a wrongful loss of 12.30 crore to the bank with a corresponding wrongful gain to himself.ED investigation revealed that Subbaiah and others had availed a loan on the basis of non-existent and non-converted properties registered at highly inflated values. The investigation revealed that Subbaiah, instead of utilising the said loan amounts for the stated business purpose, diverted, layered and siphoned off the loan proceeds by transferring it to other co-accused associates and entities by way of bogus sub-contracts, fake raw material bills, round-tripping of funds and cash withdrawals.It was further revealed that Subbaiah also misused bank guarantees under the NSIC raw material assistance scheme by submitting forged pro-forma invoices and routing the funds back to his own bank accounts. The investigation revealed that Subbaiah used the proceeds of crime for repayment of loans, for securing projects and for his personal and business expenditure.
