HYDERABAD: The Central Bureau of Investigation (CBI) booked Hyderabad-based infra company Kranthi Edifice Private Limited for Rs 94 crore loan fraud. The accused firm, which was involved in execution of Devadula Irrigation Project works, allegedly defrauded Canara Bank by diverting the loan amount to its associate company.
The fraud was detected on January 22, 2020, the CBI said in its FIR. Apart from the company, Kranthi Edifice MD Medipalli Pratap Reddy, directors β M Suresh Kumar Reddy, M Satish Kumar Reddy, M Kalavathi, all residents of Jubilee Hills, Medipally Saileela, a resident of Gachibowli, K Hanumannth Reddy, a resident of Ameerpet β and unknown public servants were named as accused.
The case was booked under IPC sections of criminal conspiracy, criminal breach of trust and cheating and under the Prevention of Corruption Act. Kranti Edifice is into the construction of irrigation projects, buildings and other infrastructure projects in Andhra Pradesh and Telangana.
In a complaint, Canara Bank stressed assets management branch deputy general manager B Satyanarayana said Kranthi Edifice, which has its office at King Koti, took Rs 122 crore loan from the erstwhile Syndicate Bank Malakpet branch.
The firm offered primary and collateral securities. βThe accused persons diverted the loan to their associate firm SR Constructions and misappropriated the funds. The accused made various payments to related parties without any supporting documents,β alleged Canara Bank in the complaint.
The accused also utilised the bank guarantee and diverted the work bills which were charged to the bank. Without the knowledge of Canara Bank to avoid repayment of credit facilities, the accused misappropriated and cheated the bank to the tune of Rs 94 crore. The account became a non-performing asset on August 6, 2018, the CBI said.