The Central Bureau of Investigation (CBI) on December 18 registered two separate cases of alleged bank fraud worth Rs 8,239.79 crore.
While Canara Bank filed a complaint of fraud to the tune of Rs 7,926 crore against Hyderabad-based Transstroy (India) Ltd, State Bank of India has filed a complaint of fraud of Rs 313.79 crore against Chennai-based Agnite Education Ltd.
Both the accounts have become non-performing assets (NPAs).
Following the complaints, the CBI conducted searches at various locations including Hyderabad, Guntur, and Chennai, among other places and seized some documents.
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In the first case against Transstroy, the central investigating agency has registered an FIR against M/s Transstroy (India) Ltd, its CMD Cherukuri Shridhar Sridhar, Additional Directors Rayapati Sambasiva Rao and Akkineni Satish, some unknown public servants and others.
People familiar with the development said the amount involved in the Transstroy fraud - Rs 7,926 crore - is even higher than what fugitive diamantaire Nirav Modi owes to banks in India, Hindustan Times reported.
The 49-year-old is currently facing extradition proceedings and is lodged in a UK jail. He owes some Rs 7,700 crore to Indian banks.
Transstroy deals in construction of highways, bridges, irrigation projects, and metro related work. The firm is also in the business of oil and gas, which is currently under liquidation process as per the National Company Law Tribunal (NCLT) September 2019 order.
CBI spokesperson RK Gaur said Transstroy had availed credit facilities on multiple banking arrangements from a Canara Bank-led consortium of banks.
In the second case, the CBI booked Agnite Education Ltd, its Chairman K Balasubramaniam, Director K Padmanabhan, some unknown public servants and others.
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