ED Files Prosecution Complaint Against Venus Aqua Foods Limited in Multi Crore Bank Fraud 

In a case involving multi-crore bank fraud, the Directorate of Enforcement (ED) has filed a Prosecution Complaint before the Hon’ble Special Court in Visakhapatnam, Andhra Pradesh against M/s Venus Aqua Foods Limited, its Managing Director Nimmagadda Ramakrishna, Sri S. Ramchander Rao (the then Chief Manager of Andhra Bank), and others under the Prevention of Money-laundering Act (PMLA), 2002. On 09.05.2022, the special PMLA Court in Visakhapatnam took cognizance of the Prosecution complaint.

On the basis of a FIR filed by CBI BS&FC, Bangalore under different provisions of the Indian Penal Code, 1860, and Section 13(2) r/w 13(d) of the Prevention of Corruption Act, 1988, the ED launched a money-laundering probe.

M/s Venus Aqua Foods Limited, its directors, and their family members and relatives obtained loans from Andhra Bank for cultivating pisciculture activities and Agriculture Cash credit loans (AGLCC) in collusion with the bank’s chief manager, but did not use the loan proceeds for the intended purpose, according to the ED investigation. Debts were withdrawn in cash and routed to settle earlier loans and purchase immovable properties in the names of directors of M/s Venus Aqua Foods Limited and their family members, according to the investigation. The money was also redirected to make a Tollywood film called ‘AakashameHaddu,’ resulting in a loss to the Public Sector Bank of Rs.54.64 crore (with interest).

The properties of Nimmagadda Ramakrishna and others were previously attached by the ED for a total of Rs.13.75 crore via Provisional Attachment Order, which was affirmed by the Hon’ble Adjudicating Authority, PMLA, New Delhi in Original Complaint of 2020 dated 16.04.2021.

Further investigation is under progress.