SBI files case against YSRCP MP with CBI

Hyderabad: CBI registered a new case against YSRCP MP Raghu Ram Krishnam Raju on charges of forging documents and non-payment of 237.84 crore loan to the banks.

The central bureau has filed an FIR based on compliant given by Deputy General Manager, SBI, Chennai. The complaint was registered on the Ind Bharat Power Limited company and its Directors.

Krishnam Raju was one of the directors of the company and others are Kanumuru Rama Devi, Raju Kumar Ganta, Dumpala Madhusudhan Reddy, Narayana Prasad Bhagavathula, Ramachandra Iyer Balakrishnan.

The consortium of banks has alleged that the borrowing company, its directors and other unknown persons and public servants conspired and committed the acts of cheating, forgery including valuable securities, used forged documents as genuine, criminal misconduct, diverted and siphoned off the bank's funds and cheated the lending banks to the tune of Rs 237.84 crore. Based on forensic audit report by BDO India LLP on September 24, 2020, the banks have revealed that the company and its directors colluded and committed illegal activities. The key observation of the report are diversion of funds, misapporitation of funds, absence of supporting documents for operating expenses incurred, non-adherence to Trust and Retention account.

Axis bank, the lead lender to the company, which is not a PSU, could not lodge a complaint with the CBI. Hence SBI on behalf of the banks' consortium, registered the complaint against the erring company.