CBI arrests two Totem Infra directors in Union Bank fraud case

The Central Bureau of Investigation (CBI) arrested two directors of Totem Infrastructure - Tottempudi Salalith (the promoter director) and Tottempudi Kavitha (director) - in a bank fraud case. A CBI spokesperson confirmed the arrests, saying they have been taken into custody and will be produced in the court.

The First Information Report (FIR) on the suspected offence in this case names Totem Infrastructure and the two directors. The CBI had registered a case against the company and its two directors on Thursday following a complaint from Industrial Finance Branch of Union Bank of India in Hyderabad on the allegations of cheating the bank to an extent of around Rs 313.84 crore.

"It has been alleged that the Hyderabad-based private company was banking with a consortium of 8 banks/financial institutions and the total dues as on date to the consortium stands at Rs 1394.43 crore(approx)," a CBI statement said.

It also states that the private company based at Banjara Hills in Hyderabad was in the business of EPC contracts, engaged in road projects, water works, building structures and also undertook works as a sub-contractor to various companies. According to the CBI statement, the company's account became NPA on June 30, 2012 on default of payments of interests and instalments.

"It was alleged that the said private company had diverted the funds by opening accounts outside the consortium and through payments of wages by showing excess expenditure & huge stocks. The entire sale proceeds were not allegedly routed through the dealing branches of consortium banks," the statement further said.