CBI books steel company MD, employees in Rs 53-crore scam

The CBI has booked Managing Director and five other employees of a Hyderabad-based steel company in a case of cheating and corruption and allegedly causing a loss of over Rs 53 crore to State Bank of Hyderabad.

They have also been accused of taking credit facilities on the basis of fake collateral securities.

The CBI has alleged that Uday Krishna Steel Rolling Mills had availed of various credit facilities from State Bank of Hyderabad but did not repay, thereby alleged causing a loss of Rs 53.81 crore (approx) to the bank.

The agency today carried out searches at six locations in Hyderabad and Koma Reddy in Telangana in connection with the case.

The CBI has registered a case of criminal conspiracy, cheating and corruption against the company, its Managing Director and five other directors.

It is alleged that the bank sanctioned various credit facilities to the company on the basis of collateral securities which were subsequently found to be fake.

"It was also alleged that the Directors of the company had produced fake and fabricated title deeds as collateral securities to the bank, sold away the collateral securities and diverted the proceeds for their personal use, impersonated the guarantors, etc," CBI Spokesperson R K Gaur said.