How 'Ghost Farmers' Accounts Enabled Thota Kanna Rao to Divert Funds
Loans obtained from various financial institutions were diverted for personal use by the MD of SKSTPL.
image for illustrative purpose
The Enforcement Directorate (ED) which is investigating Sri Krishna Stockists and Traders Pvt Ltd (SKSTPL) for money laundering in a Rs 528 crore loan fraud, found fault with Thota Kanna Rao, the managing director of SKSTPL.
The ED discovered that Thota Kanna Rao had utilised accounts belonging to 'ghost farmers' to divert funds. Loans obtained from various financial institutions were diverted for personal use.
The CBI, following an IDBI complaint, had previously filed cases against Sri Krishna Agri Process India Ltd (SKAPIL), another company linked to Rao, with his family members as directors.
The ED discovered that funds from SKSTPL and SKAPIL accounts were transferred and withdrawn in cash using fake names.
The money was then deposited into personal accounts and used to buy assets. Testimonies from SKSTPL employees confirmed this scheme.
Rao used the misappropriate funds to acquire multiple properties, including those mortgaged with other lenders.
