VISAKHAPATNAM: Directorate of Enforcement (ED) has filed a case in the Special Court at Visakhapatnam, Andhra Pradesh against S. Ramchander Rao former Chief Manager of Andhra Bank, M/s Venus Aqua Foods Limited, its Managing Director Nimmagadda Ramakrishna, and others under the Prevention of Money-laundering Act (PMLA), 2002 in a case related to multi-crore bank fraud on Tuesday.
The ED initiated a money-laundering investigation on the basis of an FIR registered by CBI BS&FC, Bangalore under various sections of the Indian Penal Code, 1860 and Section 13(2) r/w 13(d) of Prevention of Corruption Act, 1988. ED had earlier attached the properties of Nimmagadda Ramakrishna and others to the tune of Rs.13.75 Crore in April last year.A CBI FIR was filed earlier mentioned that the company and its directors cheated the Union Bank of India's (erstwhile Andhra Bank) Gudivada branch (Krishna district) to the tune of Rs 36.97 crore in connivance with former Andhra Bank manager.
ED investigation revealed that M/s Venus Aqua Foods Limited, its directors, and their family members & relatives have availed a loan for cultivating pisciculture activities and Agriculture Cash credit loans (AGLCC) from Andhra Bank in connivance with the chief manager of Andhra Bank but did not utilise the loan proceeds for the intended purpose.
Investigation revealed that loans were withdrawn in cash and diverted to repay old loans and purchase of immovable properties in the name of directors of M/s Venus Aqua Foods Limited and their family members.
The money was even diverted to produce a Tollywood Movie by name of ‘Aakashame Haddu' in 2011 and thereby caused a loss of Rs.54.64 Crore (including interest) to the Public Sector Bank.
ED has filed Prosecution Complaint before Hon’ble Special Court at Visakhapatnam, AP against M/s Venus Aqua Foods Limited, its MD Nimmagadda Ramakrishna and others under PMLA, 2002 in a case related to multi-crore bank fraud. Court has taken cognizance of the PC on 09.05.2022.— ED (@dir_ed) May 10, 2022