The Enforcement Directorate’s Hyderabad Zonal Office has provisionally attached four immovable properties valued at Rs 2.91 crore under the Prevention of Money Laundering Act (PMLA), 2002. These properties, including agricultural land, residential plots, and a commercial property, are linked to a bank fraud case involving Subbaiah Korrapati and his associates. The ED initiated the probe following an FIR filed by the Anti-Corruption Bureau (ACB), Hyderabad, against Korrapati and others under various sections of the Indian Penal Code, 1860.
The ACB’s charge-sheet, filed on April 21, 2023, alleged that Korrapati obtained credit facilities of Rs 10 crore from Syndicate Bank, Chandanagar Branch, using forged sub-contract agreements and non-existent work orders as collateral. Investigations revealed that Korrapati, along with accomplices, intentionally submitted fake documents to secure the loans, leading to a wrongful loss of Rs 12.30 crore to the bank and an equivalent gain for himself. The ED’s investigation uncovered that Korrapati misused funds by diverting them through fraudulent means, including bogus subcontracts and cash withdrawals.
Korrapati was found to have abused the NSIC Raw Material Assistance Scheme by submitting forged bank guarantees and invoices, subsequently channeling the funds back to his accounts. The illicitly obtained money was utilized to repay loans, support personal and business expenses, and finance other projects. The frozen assets, now attached, are prohibited from sale or transfer until further legal actions are taken. Efforts are ongoing to track additional illicit proceeds and associated entities.
