According to reports, CBI 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.
Initial projections hint that the money involved in the fraud case is even higher that the amount fugitive diamantaire Nirav Modi owes to Indian banks. The businessman, who is on-the-run and is currently facing extradition proceedings, siphoned off Rs 7,700 crore from Indian banks.
The additional director of Transstroy has been named in the FIR as accused, besides the company, its chairman-cum-managing director Cherukuri Sridhar and another additional director Akkineni Satish.
It was alleged by the CBI that the private firm based in Hyderabad and its directors had availed credit facilities on multiple banking arrangements.
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"The consortium was formed with other banks, led by Canara Bank. It was further alleged that the accused had involved in falsification/fabrication of books of accounts, fudging of stock statements, tampering of balance sheets, round tripping of funds, etc.," news agency PTI quoted CBI spokesperson R K Gaur as saying.
"Searches were conducted at the premises of private company/other accused at Hyderabad and Guntur, which led to recovery of incriminating documents," Gaur said.
The official said that the accused misappropriated bank funds and diverted the loan amount sanctioned and caused loss of Rs 7,926.01 crore to Canara Bank and other member banks. The account had become NPA and the fraud was reported.