Ramakrishna Raju represents the Narsapuram constituency in Lok Sabha.
New Delhi:
The CBI has booked YSRCP MP Kanumuru Raghu Ramakrishna Raju, his wife and nine others in connection with an alleged case of loan default worth Rs 826 crore in a consortium of banks led by the National Bank of Punjab by Ind- Barath Thermal Power Ltd, officials said.
Mr. Raju and his wife Kanumuru Rama Devi are directors of the company.
The agency registered the case against Raju, his wife Devi, and nine others, including the Secunderabad-based company and its managing director, Sitaramam Komaragiri, under the sections of the Indian Penal Code related to criminal conspiracy and deception. , in addition to the provisions of the Law on Prevention of Corruption. they said.
After registering the case, CBI teams conducted searches at around 11 locations in Hyderabad, Mumbai and the West Godavari district in Andhra Pradesh on Thursday, officials said.
“In the complaint it was alleged that the defendant had misled the consortium of banks led by the Punjab National Bank (PNB) by diverting / diverting bank funds, etc.,” said CBI spokesman RK Gaur.
Mr. Raju represents the Narsapuram constituency in Lok Sabha.
The CBI has registered the FIR on the basis of a PNB complaint alleging that the company had committed fraud during 2014-18 by diverting public funds through the diversion issued to the company for the installation of a 300 MW power plant in the district from Uttara Kannada, he said.
Due to environmental issues, the project moved to Tuticorin, he said.
Members of the PNB-led consortium of 10 banks had declared account fraud between 2019-20, said the complaint from PNB, now part of the FIR.
The bank has alleged that the company, instead of paying debts to the bank, made payments of 267 million rupees to related parties during 2014-18, in addition to this, the company also transferred 41 million rupees of accounts receivable to them. .
The company did not provide any documents, reasons or justification to transfer these Rs 300 million working capital loans made by banks to related parties, officials said.
The bank has alleged that the diversion of funds violated RBI guidelines.
The company showed that the value of all coal inventory dropped from Rs 249.67 crore on March 31, 2017 to Rs 2.76 crore on March 31, 2018, the bank alleged.
The minutes of the meeting record that the value of the coal inventory deteriorated because it was old and unusable due to sustained deterioration.
“It is highly unlikely that such a large number of shares have deteriorated in a period of just one year and no steps could be taken to collect the money,” the bank said.
According to the registry, the company regularly performed the physical verification of the inventory, however, it has not provided documents for the physical verification of the inventory during 2016-17 and 2017-18, it alleged.
“It is clear that the defendants … in collusion with each other or with any other person have indulged in the diversion of funds, the diversion of funds to the detriment of the bank with a view to criminal misappropriation and commit fraud against the bank which cause them illicit profit and illicit loss for lenders in the amount of outstanding Book of Rs 826.17 crore as of October 31, 2019 and the corresponding interest from the date of NPA of the respective banks “, alleged the bank.
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