The CBI on Wednesday conducted searches against a Hyderabad-based company and others in a case alleging that they had cheated a consortium of banks causing a loss of ₹4,837 crore.
The accused have been identified as the VRCL Limited, its managing director E. Sudhir Reddy, joint managing director R. Balarami Reddy and others. Bank officials are also under the scanner.
The case has been registered on a complaint from the SBI on behalf of seven other lenders, including IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank and Union Bank of India.
After the loan account was declared non-performing asset, the banks got a forensic audit conducted. The auditors found that the company had allegedly made payments to related parties through letters of credit, without recording any purchase transactions in the books. The funds were routed to the company’s account and misappropriated, as alleged.
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