The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached immovable properties in the form of land parcels and buildings worth ₹4.60 crore in a bank fraud case of Sri Krishna Stockists & Traders Private Limited and its directors. The present market value of these properties is estimated to be ₹18.42 crore.
The ED had initiated investigation on the basis of three FIRs registered by the CBI, on the complaints of lending banks, including Industrial Finance Corporation of India Limited (IFCI Limited), Industrial Development Bank of India (IDBI) and Canara Bank. They claimed that Sri Krishna Stockists & Traders Private Limited (SKSTPL) and Sri Krishna Agriprocess India Pvt Ltd. (SKAIPL), through their directors, had availed huge amount of loans by furnishing false and fabricated balance sheets of the company, forged and grossly inflated valuation reports of mortgaged assets, fabricated work estimates etc.
“The loan funds were diverted and the account became NPA causing net loss to the banks to the tune of ₹528.26 crore (including interest),” said an official release from the ED.
Their investigation revealed that SKSPL and SKAPIL, represented by their managing director, Thota Kanna Rao, secured various credit facilities to the extent of ₹313 crore from IFCI, IDBI and Canara Bank between 2014 and 2015. The credit facilities were availed towards construction of storage facility for preserving, processing and resale of agricultural produce. All the credit facilities were secured through mortgage of immovable properties and stocks which were highly inflated, in connivance with the employees of Andhra Pradesh Industrial and Technical Consultancy Organisation Limited, MITCON Consultancy & Engineering Services, and V.C. Rammohan, the then DGM of IFCI.
“Thota Kanna Rao also manipulated the records/books of accounts and managed to obtain fake work completion certificates and submitted the same to the financial creditor to justify the loans availed. Fund trail investigation by the ED revealed that the said loan amounts were withdrawn in cash and laundered by the accused to purchase various land parcels,” said the release.
The ED had earlier attached 57 land parcels worth ₹37.38 crore on August 3, 2022 during the investigation. Prosecution complaint has also been filed in this case before the CBI Court in Nampally.
Published - October 16, 2024 08:35 pm IST
