The Central Bureau of Investigation (CBI) registered a case against Hyderabad-based Totem Infrastructure Ltd for allegedly defrauding a consortium of eight banks, led by Union Bank of India (UBI), of Rs 1,394 crore.
The CBI also carried out raids at several places here after filing the FIR against the firm, and its promoters Tottempudi Salalith and his wife Tottempudi Kavita.
The CBI filed the case on the basis of a complaint filed by UBI which was cheated of Rs 303.84 crore allegedly by the firm. “(The) loan was taken from a consortium of eight banks including UBI which was the lead bank. Total outstanding dues for the consortium is Rs 1,394.43 crore. This account became NPA (non-performing asset) on 30 June, 2012, after loan and interest payment default,” a CBI official said. Totem Infrastructure was in the business of road projects, water works and building construction. It is alleged that funds were diverted and expenditure was inflated, the official said.
“The company diverted funds by opening accounts outside the consortium and through payments of wages by showing excess expenditure and huge stocks. The entire sales proceeds were not allegedly routed through the dealing branches of consortium banks,” reads a CBI statement.
On Wednesday, the CBI filed a case against a Chennai-based jeweller, Kanishk Gold Pvt Ltd, for defrauding a consortium of 14 banks led by the SBI of Rs 824.15 crore in the form of loans that have now been declared as NPA.