ED files complaint against ex-banker, others in Rs 19 crore scam

The spurious gold loan amount was used for their personal gains and that of their accomplices.
Enforcement Directorate
Enforcement Directorate

BENGALURU: The Directorate of Enforcement (ED) has filed a Prosecution Complaint (PC) before the Principal City Civil and Sessions Judge and Special Court in Bengaluru against T L Praveen Kumar, former branch manager, Bank of Baroda (BoB), S K Subramanaya Reddy, R Ranganath, Narasimha Murthy K, Santha Kumari K and R Kavitha under Prevention of Money Laundering Act (PMLA). The court has taken cognisance of the PC, the central agency stated in an official release on Wednesday.

The ED had initiated a money laundering investigation on the basis of an FIR registered by Central Bureau of Investigation (CBI), Anti-Corruption Branch (ACB), Bengaluru, under various sections of the IPC. Subsequently, the CBI had charge-sheeted the accused.

“The investigation has revealed that Kumar, while working as a senior manager and branch head, BoB, Kengeri, Bengaluru between December 13, 2017 and July 7, 2018, in collusion with Reddy and others, had sanctioned 186 gold loans against the pledge of spurious gold ornaments to 57 borrowers with a mala-fide intention, by deviating from the extant guidelines of the bank and caused loss of Rs 19.03 crore.

These borrowers were found to be relatives, friends and employees of Reddy,” the ED stated. The agency added that Reddy “transferred the gold loan money received in the respective gold loan accounts to a personal account held in his name and in the name of his family members, thus layering the proceeds of the crime.

The spurious gold loan amount was used for their personal gains and that of their accomplices. The proceeds of crime were laundered by way of acquiring/possessing immovable properties.” Earlier, the Directorate had provisionally attached immovable properties of Rs 4.83 crore. The Provisional Attachment Order was confirmed by the adjudicating authority (PMLA), New Delhi.

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