Bank loan

ED files cost sheet in Rs 23.73 cr bank loan fraud case

New Delhi, 7th November Enforcement Enforcement (ED) on Monday filed an indictment against AGS Infotech Private Limited and its Director G. Dhananjaya Reddy at a PMLA Special Court in Bengaluru in a bank loan fraud case of Rs 23.73 crore allegedly committed by the company and its executives.

The court heard the prosecution’s complaint and set the case for hearing at a later date.

The ED opened the money laundering investigation based on a criminal case registered by the CBI against the Director of AGS Infotech Ltd and others for deceiving the United Bank of India out of Rs 23.73 crore through fraudulent means in sanctioning and use of credit facilities on behalf of AGS Infotech Ltd.

The ED learned that Reddy and the other accused persons then deceived the United Bank of India and secured a loan of Rs 23.73 crore by creating collateral based on fabricated documents, misappropriated loan proceeds for other than those for which they had been sanctioned and thus committed the money laundering offence.

“Reddy is a repeat offender and is the mastermind of two other bank frauds committed through his two companies, namely Nexxoft Infotel Ltd and Ignis Technology Solutions Pvt Ltd,” the ED mentioned in the indictment.

Reddy was arrested by the ED earlier for his alleged involvement in two other PMLA cases.

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