Nagpur: The Enforcement Directorate (ED) has launched a major crackdown on a massive loan fraud case, conducting search operations at eight locations across Nagpur and Bhandara districts of Maharashtra and Guntur district in Andhra Pradesh. The raids are linked to a Rs 113 crore fraud involving banks and farmers, allegedly orchestrated by Vijayawada-based businessman Ramanarao Bolla, his associate Veer Vyankatrao Satyanarayan Wakalkudi, and Nagpur’s Nutan Rakesh Singh.
The searches, which took place this week, came nearly two years after the Nagpur Rural Police first registered FIRs in the matter, a delay that has sparked questions about the pace of investigation.
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Farmers, banks duped
According to ED investigators, the fraud ran much deeper than just bank losses. Besides cheating the then Corporation Bank (now Union Bank of India), the accused also duped 151 farmers from Nagpur and Bhandara districts, inflating the total fraud amount to nearly Rs 152.90 crore.
During the raids, officials seized incriminating documents, property papers, digital devices, and Rs 10 lakh in cash. Multiple movable assets, including bank balances and insurance policies, were also frozen, while investigators identified immovable properties worth more than Rs 100 crore, suspected to have been acquired using fraudulent loan money.
Investigators allege that Ramanarao Bolla and his associates lured farmers by promising to help them open bank accounts to receive government crop compensation. Farmers were asked to hand over Aadhaar cards and other documents, which were then misused.
With the help of Sandeep Revnath Jangale, the then Assistant Manager of Corporation Bank’s Umarkhed branch, accounts were opened in the names of these unsuspecting farmers. Loans of about Rs 50 lakh each were sanctioned in their names, with Bolla himself acting as guarantor.
Instead of being used for agriculture, the funds were siphoned off for the accused’s personal and business gains. As the loans turned into Non-Performing Assets (NPAs), the bank suffered losses pegged at Rs 113 crore.
Parallel fraud by Nagpur accused
The ED also uncovered a similar fraud ring operated by Nutan Rakesh Singh, wife of Rakesh Upendra Singh. Using the same network of bank officials, she stood as guarantor for loans sanctioned in the names of 54 farmers, resulting in a fraud of nearly Rs 39.43 crore (including interest).
Investigators claim that both Bolla and Singh diverted loan money into purchasing properties — some in their own names, others in the names of relatives or companies under their control. A portion of the funds was also allegedly used to repay earlier debts of their other ventures.
The case is being probed under the Prevention of Money Laundering Act (PMLA), 2002, based on the original FIRs lodged by Nagpur Rural Police under relevant sections of the Indian Penal Code.
An ED officer confirmed that the agency is now tracking the money trail to identify further assets linked to the fraud. “The scale of cheating is enormous, impacting both farmers and the banking sector. More seizures and arrests are likely,” the officer said.
