ED files money laundering case in fishermen loan waiver scam in Udupi

Mangaluru : The Enforcement Directorate has registered a money laundering case in connection with an alleged loan waiver fraud involving fishermen self-help groups in Udupi district. The  case has been booked under the Prevention of Money Laundering Act (PMLA), 2002, and a prosecution complaint has been filed before a special court.

The complaint names Mookambika Grameena Abhivruddhi Trust along with key  accuseds Baby Kotari, Harish Kharvi, P. Ramadas and Ramakrishna P.

https://x.com/dir_ed/status/2037470841416642915?s=20

The ED initiated its investigation based on an FIR registered earlier at Byndoor police station in Udupi district. The FIR alleged that ineligible fishermen self-help groups had availed benefits under the  state government’s loan waiver scheme.

According to the probe, during the 2017–18 financial year, loans were facilitated to multiple self-help groups through Union Bank of India with the involvement of the trust. Instalment amounts were collected from beneficiaries and deposited in the bank to project regular repayment activity.

However, the investigation found that the entire repayment amounts were not deposited as claimed. A portion of the funds was allegedly diverted for other purposes, resulting in financial loss to the self-help groups.

To conceal the irregularities, the  accused , in alleged collusion with a bank manager, submitted loan waiver applications for 58 ineligible self-help groups under the government scheme meant for fishermen. These applications were reportedly filed without proper documentation or eligibility verification.

The ED has estimated that the  accused  generated proceeds of crime amounting to ₹1.66 crore. Part of this amount was used to settle dues of certain groups, while the remaining funds were diverted for other uses.

Based on these findings, the agency has invoked provisions under Section 3 of the PMLA related to money laundering, which is punishable under Section 4 of the Act. The prosecution complaint has been filed before the special court, and further investigation is in progress.

Authorities are currently examining financial transactions, bank records, and the possible involvement of additional individuals in the scam. The case has raised concerns over the misuse of welfare schemes intended for fishermen communities and the need for stricter monitoring mechanisms.