Central Bureau of Investigation (CBI) officials on Wednesday registered a case against Hyderabad-based leading infrastructure company IVRCL Limited and others.
The case was registered based on a complaint lodged by State Bank of India-Hyderabad against the company’s managing director E. Sudhir Reddy and joint managing director R. Balarami Reddy along with some unidentified public servants.
The bank alleged that the company, with the connivance of some government officials (who are yet to be identified), defrauded a consortium of public sector banks to the tune of ₹4,837 crore. The consortium included SBI, IDBI bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab and Sind Bank and Union Bank of India.
The bank charged that the company represented by its MD and JMD secured credit limits form the consortium of public sector banks and cheated it by defaulting the payments. The bank said that, according to Forensic Audit Report, the company made payments to some parties through Letters of Credit ensuring the purchase transactions were not recorded in the books.
The funds were routed to the company and thus misappropriated the bank funds, a statement from the CBI said.
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