CBI raids former TDP MP offices in Guntur and Hyderabad

Special teams from New Delhi with support from their colleagues in the regional offices in Telangana and Andhra Pradesh conducted the searches in Guntur and Hyderabad.

Hyderabad: The Central Bureau of Investigation (CBI) on Friday carried out simultaneous searches on the premises of a former TDP MP at his native place in Guntur district in Andhra Pradesh and in Hyderabad in connection with a bank fraud case booked against him.

Special teams from New Delhi with the support of their colleagues in regional offices in Telangana and Andhra Pradesh conducted the searches in Guntur and Hyderabad. The CBI booked the case against the former MP’s company for allegedly diverting funds for other purposes.

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The company allegedly obtained a bank loan from a consortium of banks led by a nationalised bank and allegedly diverted the funds in violation of norms. In a press release, the CBI said incriminating documents were recovered during the searches.

The probe agency registered two separate cases related to the bank fraud to the tune of approximately Rs.7,926.01 crore and Rs.313.79 crore. The first case was registered against the Hyderabad-based private company and others including its CMD, additional directors, unidentified public servants and others on a complaint from Canara Bank.

It was alleged that the private firm and its directors availed credit facilities on multiple banking arrangements. The consortium was formed with other banks led by Canara Bank. It was further alleged that the accused were involved in falsification of books of accounts, fudging of stock statements, tampering of balance sheets, round tripping of funds, among other irregularities.
It was also alleged that the accused misappropriated bank’s funds and diverted the loan amount sanctioned by banks and caused loss of Rs 7,926.01 crore to Canara Bank and other member banks. The account had become NPA and the fraud was reported.

The second case was against a private company based in Chennai and others including its Chairman, director, unidentified public servants and private persons on a complaint from State Bank of India (SBI). It was alleged that the borrower company represented by its Chairman and director availed credit limits of approximately Rs.310 crore from SBI.

It was further alleged that the loans amounts were diverted to related parties. The account became NPA and declared as fraud. An alleged loss of Rs.313.79 crore was caused to the bank.

Searches were conducted at the premises of the accused in Chennai which led to recovery of incriminating documents. Investigation in both the cases was continuing.

 

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