CBI files indictment against rebel YSRCP MP in loan fraud case
K. Raghu Rama Krishna Raju, 15 others accused of causing the loss of 947.71 cr. to the consortium of lenders
The Central Bureau of Investigation filed a complaint against rebel MP YSRCP and then Chairman / CEO of Ind-Barath Power Madras Limited, K. Raghu Rama Krishna Raju and 15 others for allegedly causing a loss of 947.71 yen crores to a consortium. lenders.
Among those arrested were Ind-Barath Power Madras Limited, Mr. Raju and then Director Madhusudhana Reddy. The eight sister entities of the company were also named; in addition to Sokeo Power Private Limited, its managing director, Y. Nagarjuna Rao; and two chartered accountants, Mr. Sreenivasulu Reddy and Pravin Kumar Jabad.
In April 2019, by order of the central government, the CBI resumed the investigation of a case registered with the economic offenses wing of the Delhi police in October 2018, against five accused persons, including a company based in Hyderabad and its leaders.
The agency found that the company – through its chairman / CEO – allegedly took about 947.71 crore yen from the consortium comprising Power Finance Corporation Limited, Rural Electrification Corporation Limited and India Infrastructure Finance Company. Limited for the installation of a thermal power station in Tuticorin in Tamil Nadu.
However, as alleged, the company neither completed the project nor honored the terms and conditions of the loan agreements. Defendants transferred / embezzled disbursed funds to create term deposits with Bank of India and UCO Bank and to pay advances to entrepreneurs.
âSubsequently, the defendants availed themselves of loans against these fixed deposits and advances paid to the contractor for the group companies and later, due to the non-repayment of the loan amount, said fixed deposits were adjusted on the accounts loan, resulting in a loss for lenders, âthe agency said.