The Central Bureau of Investigation (CBI) has brought a case against a Hyderabad-based company, Transstroy (India) Ltd, for allegedly misleading a 7.926 million rupee consortium of banks, officials said on Friday.
People familiar with the development said the amount involved in the fraud is even greater than what fugitive diamond man Nirav Modi owes to banks in India. The 49-year-old is currently facing extradition proceedings and is in a UK jail. It owes some 7.7 billion rupees to Indian banks.
Transstroy, which deals with the construction of roads, bridges, irrigation projects, metro-related works and is also in the oil and gas business, is currently in liquidation according to an order from the National Court of Law of Companies (NCLT) in September 2019.
Apart from Transstroy and his CMD Cherukuri Shridhar Sridhar, the IWC has named Rayapati Sambasiva Rao (additional company director) and Akkineni Sathish (additional director) as defendants in the FIR registered in its Bengaluru unit.
On Friday, agency teams carried out raids in Hyderabad and Guntur at the defendants’ facilities and recovered documents related to the fraud, authorities said.
CBI spokesman RK Gaur said that Transstroy had taken advantage of the credit facilities in multiple banking agreements of the consortium formed with other banks led by Canara Bank.
“It was further alleged that the defendant had participated in the falsification / manufacture of account books, falsification of account statements, alteration of balances, transfer of funds, etc. It was also alleged that the defendant misappropriated the bank’s funds and diverted the loan amount sanctioned by the banks and caused a loss of Rs 7926.01 crore (approximately) to Canara Bank and other member banks. The account had been converted to NPA (non-performing asset) and fraud was reported, ”Gaur said.
HT could not reach legal or company representatives for Transstroy for comment.
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