CBI books AP-based firm for Rs 51-crore bank fraud

HYDERABAD: The Central Bureau of Investigation has registered an FIR against Sri Krishna Agri Process India Limited in connection with a Rs 51-crore bank fraud. CBI charged the AP-based firm and its directors with taking loans from IDBI Bank and fraudulently diverting the funds.
The charges were framed under criminal conspiracy, cheating and forgery sections of Prevention of Corruption Act against firm’s directors — Thota Kanna Rao, Thota Venkata Ramana and Thota Surendra — along with the company and unidentified official servants.

CBI said in the FIR that involvement of some public servants and unknown private persons is also suspected in the case, which would be probed. The investigation agency filed the FIR based on a complaint from IDBI Bank, Chapel Road branch, Hyderabad.
CBI said the accused placed 21 properties worth Rs 19.5 crore as collateral security for obtaining the loan. Over a period of time, Sri Krishna firm availed Rs 51 crore from IDBI Bank in a fraudulent manner by submitting fake audited balance sheets and stock statements. “The accused had diverted the money for other purposes and caused wrongful loss to the bank,” it said. The bank had auctioned two properties worth Rs 3.4 crore, but the debt recovery tribunal (DRT) has not issued a sale certificate to the successful buyer. A forensic audit of the account found several irregularities, including diversion of money, manipulation of balance sheets and fraudulent accounting, it said. In July 2017, Sri Krishna’s account has been declared as a non-performing asset by the bank.
The accused — members of the same family — floated Sri Krishna Traders in 1999 and obtained credit facility of Rs 5 crore in 2008. The credit limit was increased to Rs 10 crore in 2009. The accused converted the proprietorship into a partnership firm and then into a private limited company by merging trading business with Lakshminarayana Traders and Kanna Rao Hindu undivided family firm.