The Central Bureau of Investigation on December 30 informed that they raided the premises of infrastructure firm IVRCL, its Managing Director E Sudhir Reddy and Joint Managing Director R Balarami Reddy.
The central probing agency had earlier booked the Hyderabad-based company and its directors on a complaint from the State Bank of India and raided their premises for an alleged fraud worth over Rs 4,800 crore against a consortium of banks.
CBI detects two new bank frauds worth Rs 8,239.79 crore; firms in Hyderabad, Chennai booked
"It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of public sector banks, consisting of State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank, Union Bank of India and caused a loss of Rs 4,837 crore to the banks," news agency PTI quoted CBI Spokesperson RC Joshi as saying.
The probing agency in the complaint had also alleged that the firm availed credit facilities from consortium members, but didn't repay the loan amount.
"It was also alleged that as per the forensic audit report, the company made payments to related parties through letters of credit (LCs), without recording any purchase transactions in the books and routed the funds to the account of the company and thereby misappropriated the bank funds," Joshi added.
Following the searches at the residential and official premises of the accused at Hyderabad, the CBI recovered several incriminating documents.
Earlier on December 18, CBI registered two separate cases of alleged bank fraud worth Rs 8,239.79 crore. The first complaint was filed by Canara Bank against Hyderabad-based Transstroy (India) Ltd and other for an alleged fraud of Rs 7,926 crore. While the second case of fraud was registered against Chennai-based Agnite Education Ltd and some associates for an alleged fraud of Rs 313.79 crore.