The CBI has booked a former TDP Lok Sabha MP and his Hyderabad-based company for allegedly defrauding a consortium led by Canara Bank of around Rs 8,000 crore in what is expected to be one of the biggest banking scams seen in the country.
TDP leader Rayapati Sambasiva Rao, an additional director in Transstroy (India) Ltd, is accused along with others of fabricating accounts, round-tripping and misappropriating funds, and fraudulently reneging on repayments of Rs 7,926.01 crore to the consortium, the CBI said.
Along with Rao, another additional director, Akkineni Satish, has been arraigned as an accused. The company’s CMD Cherukuri Sridhar, too, has been booked.
The agency Friday conducted searches at the premises of the company and its office-bearers, including Rao.
“It was alleged that the private firm based at Hyderabad and its directors had availed credit facilities on multiple banking arrangements. The consortium was formed with other banks, led by Canara Bank. It was alleged that the accused had involved in falsification of books of accounts, fudging of stock statements, tampering of balance sheets, round-tripping of funds etc. It was also alleged that the accused misappropriated the bank’s funds, diverted the loan amount sanctioned by the banks, and caused a loss of Rs 7,926.01 crore to Canara Bank and other member banks,” CBI spokesperson RK Gaur said.
The alleged fraud was reported to CBI after the firm’s account became a non-performing asset.
“Searches were conducted at the premises of the private company and other accused at Hyderabad and Guntur, which led to recovery of incriminating documents,” Gaur said.
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