ED attaches assets worth ₹18 crore linked to rice mill loan fraud case

Officials from the Directorate of Enforcement (ED), Visakhapatnam Sub-Zonal Office, have provisionally attached immovable properties worth ₹18.33 crore of K. Peri Reddy and his family members/associates in the case of Kallam Modern Rice Mills Private Limited and others, under the provisions of Prevention of Money Laundering Act, 2002.The ED investigation was initiated on the basis of an FIR registered by CBI, Chennai, on the complaint of State Bank of India (erstwhile State Bank of Hyderabad), Guntur, against Kallam Modern Rice Mills Private Limited, Sri Ramabrahma Modern Rice Mills Private Limited, M/s. Sri Vinayaka Traders and others. During 2010-2013 the group obtained credit facilities of ₹24.57 crore from SBH, Arundelpet branch in Guntur, by submitting fake/forged title deeds of collateral properties and diverted the funds, causing a loss of ₹18.33 crore to the bank.Investigation revealed that K. Peri Reddy operated and managed about 26 entities registered in the names of his relatives, employees and associates, including the three borrower concerns namely M/s Kallam Modern Rice Mills Private Limited, M/s. Sri Ramabrahma Modern Rice Mills Private Limited, M/s. Sri Vinayaka Traders.Analysis of bank accounts revealed that cash of about ₹23.81 crore was withdrawn from the cash credit accounts of the three borrower concerns in the names of workers, accountants and Kallam Peri Reddy himself.Further investigation revealed that several properties were purchased out of the loan proceeds, partly in cash withdrawn from bank accounts controlled by K. Peri Reddy. It was also revealed that Peri Reddy had transferred some immovable properties to his relatives and associates without receiving any sale consideration. The said properties were only held by them as namesake owners, while he continued to be the actual beneficial owner.Accordingly, the ED provisionally attached 50 immovable properties valued at ₹16.88 crore and five flats valued at ₹1.45 crore, totalling ₹18.33 crore, located in Andhra Pradesh and Telangana, as Proceeds of Crime under PMLA, 2002 or as equivalent value thereof.Further investigation is under way. Published - November 10, 2026 09:55 pm IST