CBI obtains report on Ind-Barath’s financial dealings

HYDERABAD:  The Central Bureau of Investigation (CBI) has obtained a report from the Economic Offences Wing in Delhi, which states that Ind-Barath Power (Madras) Limited (IBPML), its directors — namely YSRCP rebel MP K Ragurama Krishnam Raju and Madhusudhan Reddy — and its promoters Ind-Barath Infra Limited (IBPIL), Arkay Energy (Rameswaram) Limited, Axis Bank Limited and Sokeo Power Private Limited, defrauded banks and financial corporations that provided financial assistance to the company. 

The said details were sought in connection with a bank fraud amounting to Rs 826 crore. Earlier, the Economic Offences Wing had registered cases against the companies, based on directions from the Ministry of Home Affairs. The CBI had received complaints from Power Finance Corporation, Indian Infrastructure Finance Corporation, Rural Electrification Corporation Limited, which had lent money to Ind-Barath Power Limited.

It was found that the said company had diverted the funds provided by financial corporations for the implementation of 660 Mega Watts coal-based thermal power project at Sathavallanur and Pallakurichi villages of Tamil Nadu.

Officials have also found that the Trust and Retention Account (TRA) agreement between the company and its lenders was violated. The banks, namely PNB, Axis Bank, IOB, SIB, Andhra Bank, and SBH, had sanctioned a total principal amount of Rs 2,655 crore. Later, Axis Bank (Greenlands branch) joined the TRA agreement.