ED attaches Rs 18.33 crore of property in Kallam Modern Rice Mills bank loan case
The Enforcement Directorate has provisionally attached 55 properties worth Rs 18.33 crore, alleging a rice mill group used forged title deeds to get SBI credit and diverted the funds.
Key points
- The ED's Visakhapatnam office has provisionally attached properties worth Rs 18.33 crore under the PMLA in the Kallam Modern Rice Mills case.
- The ED alleges the group got Rs 24.57 crore of credit in 2010-2013 using forged title deeds, causing the bank a Rs 18.33 crore loss.
- The attachment is provisional and must be confirmed by the PMLA Adjudicating Authority; the ED says its investigation continues.
Photo: Chris Woodrich / Wikimedia Commons, CC BY-SA 4.0 (cropped). Representational image.
The Enforcement Directorate (ED) has provisionally attached 55 immovable properties worth Rs 18.33 crore in Andhra Pradesh and Telangana under the Prevention of Money Laundering Act (PMLA), it said in a press release on 10 November 2026. The case concerns Kallam Modern Rice Mills Pvt Ltd and other firms that, according to the ED, obtained bank credit using forged title deeds. The properties belong to the group's promoter and his family members and associates, the ED said.
What Happened
The ED's Visakhapatnam sub-zonal office said its investigation began from an FIR registered by the CBI's Economic Offences Wing in Chennai on a complaint by State Bank of India (formerly State Bank of Hyderabad), Guntur, against Kallam Modern Rice Mills Pvt Ltd, Sri Ramabrahma Modern Rice Mills Pvt Ltd, Sri Vinayaka Traders and others.
According to the ED, between 2010 and 2013 the group obtained credit facilities of Rs 24.57 crore from State Bank of Hyderabad's Arundelpet branch in Guntur by submitting fake or forged title deeds of collateral properties, and diverted the funds, causing the bank a loss of Rs 18.33 crore.
The ED alleges that the promoter ran about 26 entities registered in the names of relatives, employees and associates, including the three borrowers. It says bank records show about Rs 23.81 crore in cash was withdrawn from the borrowers' cash credit accounts in the names of workers, accountants and the promoter himself.
The agency also alleges that several properties were bought with the loan money, partly in cash from accounts the promoter controlled, and that some properties were transferred to relatives and associates without any payment while he stayed the real owner.
The attached assets are 50 immovable properties valued at Rs 16.88 crore and 5 flats valued at Rs 1.45 crore, attached as proceeds of crime or their equivalent value.
What It Means
A provisional attachment is a temporary step: it must be confirmed by the Adjudicating Authority under the PMLA. The ED said further investigation is in progress.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
The case, as the ED describes it, turned on forged documents for collateral. Bank customers who suspect a forged document or fraud in their own dealings with a bank can complain to the RBI at https://cms.rbi.org.in, and report cyber fraud at https://cybercrime.gov.in or on helpline 1930.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate