Hyderabad: The city unit of the Central Bureau of Investigation (CBI) has booked a case against Chadalavada Infratech Limited (CIL) and its Managing Director Chadalavada Ravindra Babu for allegedly siphoning off and diverting funds and causing loss to the State Bank of India to the tune of Rs 166.93 crore.
Based on a complaint lodged by bank Deputy General Manager Debasish Bhattacharjee, the CBI booked the case against the CIL and Babu under Sections 120B (Criminal Conspiracy) read with 420 (Cheating) of Indian Penal Code (IPC) along with provisions of Prevention of Corruption (PC) Act.
According to an FIR issued by the CBI, the CIL availed the credit limits by way of fund based and non-fund based limits to the tune of Rs.281.23 crore at the bank’s Nacharam Industrial Area Branch for execution of power infrastructure projects. The projects were connected to power transmission, distribution and construction of sub-stations as an EPC contractor in Assam, Bihar, Chhattisgarh, Karnataka and Maharashtra. The company received work orders from different State Electricity Boards.
However, the forensic audit has found irregularities in issuance of Letter of Credits and Quid-Pro-Quo transactions amounting to diversion and misappropriation of funds. The company allegedly cheated the bank and fraudulently obtained the credit facilities.
The loan proceeds were diverted to certain accounts without utilising them for the purpose they were sanctioned, the FIR added.
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