ED Uncovers Rs.100 Crore Assets in Rs.153 Crore Bank Fraud
The Enforcement Directorate (ED) has identified and provisionally attached immovable properties and assets worth over Rs.100 crore in a Rs.152.9 crore bank fraud case. Authorities also seized Rs.10 lakh cash and recovered incriminating documents during raids linked to the scam.
Exploiting Farmers’ Identities for Fake Loans
The scam revolved around a fraudulent scheme where accused individuals collected Aadhaar and other identity documents from farmers under the pretext of compensation. These documents were then misused to open 212 fake loan accounts in multiple Corporation Bank branches (now Union Bank). Each account was sanctioned for Rs.49–50 lakh, with funds siphoned off, turning them into NPAs and inflicting heavy losses.
Raids, Seizure and Investigation
The ED conducted simultaneous raids in Nagpur, Bhandara (Maharashtra) and Guntur (Andhra Pradesh), uncovering property documents, digital devices, frozen bank balances, and insurance policies. Attached properties included lands, buildings, and holdings in the names of the accused and associates. A cash seizure of Rs.10 lakh was also made during on-site searches.
The accused, Ramana Rao Bolla and Nutan Singh, allegedly conspired with bank officials. In several cases, bank staff bypassed standard checks to create fraudulent accounts. The ED has filed a prosecution complaint before a special PMLA court in Kolkata and arrested the main accused.
Implications and Next Steps
This case exposes serious vulnerabilities in rural lending systems. By misusing farmers’ documents, fraudsters exploited trust and regulatory gaps. The ED’s asset seizure sends a clear message that ill-gotten gains will not be spared.
Investigations are ongoing, with efforts to trace remaining assets, recover funds, and hold all involved — including complicit bank staff — accountable.
Note for readers: Such frauds highlight the importance of strict compliance in banking, especially in rural and agricultural lending sectors.
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