The Central Bureau of Investigation (CBI) has filed a case against Hyderabad-based Chadalavada Infratech Ltd for a Rs 166.93 crore loan fraud.
The federal agency has charged the firm with criminal conspiracy, cheating and criminal misconduct on a complaint by an official of the State Bank of India (SBI).
The FIR was registered against the firm, its Managing Director Chandalavada Ravindra Babu, and unknown public servants and private persons on the complaint of Debasish Bhattacharjee, Deputy General Manager, State Bank of India's Stressed Assets Management Branch, Hyderabad.
According to the agency, a written complaint was received on March 13 requesting for registering FIR in respect of loan account of CITL and its directors and others for the alleged offence of fraud committed by siphoning off and diversion of funds in a criminal conspiracy to cheat with criminal misconduct, thereby causing wrongful loss to the bank to the tune of Rs 166.93 crore
The offence was allegedly committed between 2010 to 2018. The FIR was registered on Monday, with the CBI officials saying that there was delay in verification of the complaint due to Covid-19.
The accused allegedly entered into criminal conspiracy with unknown officers of the SBI and committed fraud upon the bank.
According to the complaint, Managing Director Chandalavada Ravindra Babu and Chadalavada Venkata Subba Rao (now deceased) had availed financial credit limits by way of fund-based limits and non-fund-based limits to the tune of Rs 281.23 crore at the SBI's Nacharam Industrial Area Branch, Hyderabad for execution of power infrastructure projects as EPC contractor in various states.
The accounts of the company were running irregular since January 1, 2011 and became NPA on April 15, 2011. The accounts of the company were migrated to SBI, SAM Branch, Secunderabad on September 22, 2019 for restructuring/rehabilitation of the unit.
Even after the account became NPA and bad performance by the company, the first restructure was approved by the bank on April 17, 2014 and again the second restructure was sanctioned by the bank on December 11, 2015, without taking any additional fund-based exposure by retaining the cash credit limit at the existing level and enhanced BG limits and allowing the company repayment relaxations, said the complainant.
The fraud came to light when the bank conducted a forensic audit of the loan account. It revealed that the company made payments to certain parties directly and indirectly, and also found irregularities in issuance of Letters of Credits and quid pro quo transactions amounting to diversion and misappropriation of funds
It is alleged that the MD/Directors of the company cheated the bank and fraudulently obtained the credit facilities. The loans proceeds were diverted to certain accounts without utilising them for the purpose they were sanctioned.
The case was registered and the agency is probing the matter further.