The Directorate of Enforcement (ED) has successfully returned assets valued at ₹56.13 crore (at current market rates) to IDBI Bank. This action concludes the restitution phase in two significant money laundering investigations connected to widespread fraud involving Kisan Credit Card (KCC) loans, originally intended for fish pond construction projects in Andhra Pradesh.
These recovered assets include a diverse portfolio of 155 land parcels, various residential and commercial plots, and apartment units located across both Andhra Pradesh and Telangana. The restoration was carried out as per court orders issued on September 15 and 18, 2025, by the Special PMLA Court in Visakhapatnam. This restitution, executed under Section 8(8) of the Prevention of Money Laundering Act, 2002, followed petitions submitted by IDBI Bank to reclaim financial losses incurred due to the fraudulent activities.
The ED’s comprehensive investigation was initiated based on First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI) against key individuals, Rebba Satyanarayana and Kumar Pappu Singh, alongside certain IDBI Bank officials. The probe uncovered that these individuals operated as loan aggregators, facilitating KCC loans amounting to an astounding ₹181.87 crore during the financial years 2010–11 and 2011–12. These loans were disbursed to approximately 230 fictitious borrowers, including members of their own families, employees, and associates, all based on a web of forged documentation through the bank’s Bhimavaram and Palangi branches.
Further investigations revealed that the illicitly obtained funds were systematically rerouted by Satyanarayana and Singh into acquiring properties and making various investments. The total financial gains from these criminal activities were estimated to be around ₹234.23 crore. Of this staggering sum, the ED had previously attached properties worth ₹84.93 crore. Legal proceedings are advancing, with prosecution complaints already submitted to the Special PMLA Court, which has officially acknowledged the case.