ED attaches properties worth ₹2.91 crore in bank fraud case

The Directorate of Enforcement Hyderabad Zonal Office has provisionally attached four immovable properties valued at ₹2.91 crore under the Prevention of Money Laundering Act, 2002, in connection with a bank fraud case allegedly perpetrated by one Subbaiah Korrapati.

The attached properties include agricultural land, residential plots and a commercial property held in the names of associates of Korrapati.

The ED initiated the investigation based on a case registered by the Anti Corruption Bureau (ACB) Hyderabad alleging that Korrapati fraudulently availed credit facilities from a public sector bank by submitting forged documents, including fake sub contract agreements, non existent work orders and fabricated property papers as collateral.

According to the ED, the accused defaulted on loan repayments, causing a wrongful loss of ₹12.30 crore to the bank. The agency said its investigation revealed that loans were availed against non existent and non converted properties registered at highly inflated values.

The ED alleged that instead of using the loan amounts for stated business purposes, the funds were diverted, layered and siphoned off through bogus sub contracts, fake raw material bills, round tripping of funds and cash withdrawals. It was also alleged that bank guarantees under the NSIC Raw Material Assistance Scheme were misused by submitting forged pro forma invoices and routing funds back to the accused’s own accounts.

Further investigation is under progress.