Transstroy, ex-TDP MP Rayapati Sambasiva Rao in CBI net for Rs 7,926 crore bank fraud
In its FIR, the CBI has named the company, its CMD Cherukuri Sridhar and additional directors Rayapati Sambasiva Rao and Akkineni Satish as accused.
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VIJAYAWADA: In a major banking scam, post-Nirav Modi’s, the Central Bureau of Investigation booked Hyderabad-based Transstroy (India) Ltd, its promoter and former TDP MP Rayapati Sambasiva Rao for an alleged bank fraud of Rs 7926.01 crore in a consortium, led by Union Bank of India.
Transstroy (India) Ltd was engaged in execution of irrigation and infrastructure projects, including the mega Indira Sagar Polavaram Project, in Andhra Pradesh, through a joint venture firm.
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Canara Bank Exposure To Transstroy Consortium Lending At Rs 678 Cr
The Central Bureau of Investigation (CBI) has alleged that loans were misappropriated by the directors causing a loss of Rs 7,926.01 crore to the consortium members.
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State-run Canara Bank on Saturday said its exposure to Transstroy India Ltd is over Rs 678 crore under a consortium lending arrangement and the borrower was declared as a wilful defaulter earlier in 2018.
The company is under the process of liquidation, it said.
In a clarification, Canara Bank said the bank s exposure to the Transstroy India is of Rs 678.28 crore contrary to news claiming it to be an alleged fraud of Rs 7,926 crore.
Canara Bank s exposure to Transstroy India is Rs 678.28 cr
By IANS |
Published on
Sun, Dec 20 2020 1:15 IST |
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New Delhi: People wait for Canara Bank to open during the extended nationwide lockdown imposed to mitigate the spread of COVID-19 pandemic, in New Delhi on Apr 15, 2020. . Image Source: IANS News
New Delhi, Dec 19 : A day after the Central Bureau of Investigation (CBI) filed a case against Hyderabad-based company Transstroy (India) Ltd for allegedly cheating a consortium of banks of Rs 7,926 crore, the Canara Bank clarified that it has an exposure of Rs 678.28 crore in the accused company.
In a statement, the Canara Bank said, The bank clarifies that it has an exposure of Rs.678.28 crore in the account of Transstroy India Ltd, reported as fraud to RBI on February 10 this year where 100 per cent provision has been made in the account.
“It was alleged that the private firm based at Hyderabad and its directors had availed credit facilities on multiple banking arrangements. The consortium was formed with other banks, led by Canara Bank. It was alleged that the accused had involved in falsification of books of accounts, fudging of stock statements, tampering of balance sheets, round-tripping of funds etc. It was also alleged that the accused misappropriated the bank’s funds, diverted the loan amount sanctioned by the banks, and caused a loss of Rs 7,926.01 crore to Canara Bank and other member banks,” CBI spokesperson RK Gaur said.
The alleged fraud was reported to CBI after the firm’s account became a non-performing asset.
CBI Books Hyderabad-Based Company for Rs 7,926 Crore Bank Fraud, Carries Out Searches
The agency carried out searches at the premises of Transstroy (India) Ltd and the accused directors, including former Telugu Desam Party (TDP) MP Rayapati Sambasiva Rao.
Canara Bank office in Mumbai, India, January 24, 2018. Photo: Shailesh Andrade/Files
Government19/Dec/2020
New Delhi: The Central Bureau of Investigation (CBI) has booked Hyderabad-based Transstroy (India) Ltd and its directors for alleged bank fraud of over Rs 7,926 crore in a consortium led by Canara Bank, in one of the biggest banking scams in the country, officials said on Friday.
The agency carried out searches at the premises of the company and the accused directors, including former Telugu Desam Party (TDP) MP Rayapati Sambasiva Rao, which led to the recovery of incriminating documents, its spokesperson said in a statement.