BoB loan fraud: CBI conducts searches at various places in Hyderabad, Kurnool

Hyderabad: Three days after registering a case against city-based Nandi Grain Derivatives Private Limited for allegedly duping Bank of Baroda to the tune of Rs 61.86 crore, the Central Bureau of Investigation (CBI) carried out searches at half a dozen places in Hyderabad and Kurnool and seized several incriminating documents. The names of two company […]

Hyderabad: Three days after registering a case against city-based Nandi Grain Derivatives Private Limited for allegedly duping Bank of Baroda to the tune of Rs 61.86 crore, the Central Bureau of Investigation (CBI) carried out searches at half a dozen places in Hyderabad and Kurnool and seized several incriminating documents. The names of two company directors V Suresh Kumar Sastry and Sreedhar Reddy Sajjala, guarantor Sashi Reddy, SPY Agro Industries Limited and other unknown persons were also mentioned in the case.

It has been alleged that the company and its directors entered into a conspiracy with others and availed loans from the Banjara Hills branch of Bank of Baroda and later diverted the money for other purposes and personal gains. It has been further alleged that the accused submitted false stock statements to the bank to conceal their irregularities, falsified their books of accounts and willfully defaulted in repayments resulting in loss to the tune of Rs 61.86 crore approximately to the bank, according to CBI press release.

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In a separate case, the CBI registered a case against six persons including three private companies based in Hyderabad for allegedly causing a loss of Rs 8.15 crore to Union Bank of India (earlier Andhra Bank). It was alleged that the private company based in the city secured an overdraft facility of Rs 4 crore and a Letter of Credit (LC) of Rs 2 crore with a total limit of Rs 6 crore on October 26, 2016, for business purposes from Union Bank of India, Defence Colony in Hyderabad.

It was further alleged that after availing loan, the company committed default in repayment of the loan in violation of the terms of the loan agreement and the account slipped into Non-Performing Assets (NPA) on November 30, 2018. Bank declared the account as fraud on September 30, 2019, and reported it to RBI the next month. It was also alleged that the borrowers had diverted and misappropriated the borrowed funds and also mortgaged disputed and unidentified property. The CBI has conducted searches on the premises of the accused which led to the recovery of several incriminating documents.

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