Former Telugu Desam Party MP from Narsaraopet Rayapati Sambasiva Rao and others were booked by the Central Bureau of Investigation (CBI) in a major bank fraud to the tune of Rs 7,926 crore on Friday.
The cases were filed against Hyderabad-based construction company Transstroy (India) Limited, promoted by Rayapati, after a series of raids on the premises of the company in Hyderabad, besides offices and residences of Rayapati and others.
Apart from the ex-MP, cases were also booked against chairman and managing director of Transstroy Cherukuri Sridhar, additional director Akkineni Satish, besides unknown public servants and others. Rayapati was shown as an additional director in the company.
Rayapati, who represented Guntur parliamentary constituency twice and Narsaraopet LS seat once, was also the original contractor for Polavaram major irrigation project before he was replaced by Navayuga during the Naidu regime.
The CBI conducted raids following a complaint from Canara Bank and seized some incriminating documents from them.
According to a press release, Transstroy and its directors availed credit facilities from a consortium of banks led by Canara Bank.
The CBI alleged that Rayapati and others had been involved in falsification and fabrication of books of accounts, fudging of stock statements, tampering of balance sheets, round tripping of funds etc.
It was also alleged that the accused misappropriated bank’s funds and diverted the loan amount sanctioned by the banks and caused loss of Rs. 7926.01 crore to Canara Bank and other member banks.
The account had become a non-performing asset and the fraud was reported, the CBI release said.
