The CBI on Friday arrested the directors of the Totem Infrastructure Ltd (TIL) in connection with its ongoing investigation into the Rs 1,394 crore loan fraud case involving a consortium of eight banks led by the Union Bank of India (UBI).
A Central Bureau of Investigation (CBI) official said that it has arrested Salalith Tottempudi and his wife Kavita Tottempudi, both promoters and directors of TIL, for allegedly defrauding a consortium of banks.
The agency's action comes in the wake of a case it filed on Thursday against husband-wife duo and other unidentified public servants on the basis of a complaint filed by the UBI's Industrial Finance Branch (Hyderabad), which has been allegedly cheated of Rs 313.84 crore by the firm.
The State Bank of India, which tops the list with Rs 357.64 crore of loans, is followed by UBI (Rs 313.84 crore), Bank of Baroda (Rs 208.67 crore), IDBI Bank (Rs 174.47 crore), Punjab National Bank (Rs 126.30 crore), Oriental Bank of Commerce (Rs 79.96), JM Financial Asset (Rs 69.07 crore) and Syndicate Bank (Rs 64.48 crore).
According to agency officials, the loan was taken from a consortium of eight banks including UBI which was the lead bank. Total dues outstanding for the consortium is Rs 1,394.43 crore. This account became NPA on June 30, 2012 after default on payments of interests and instalments.
In its complaint, the UBI cited that TIL, based at Banjara Hills in Hyderabad, obtained the loans for the business of EPC (engineering, procurement and construction) contractor which is engaged in road projects, water works, building structures and also undertook works as a sub-contractor to various companies namely IRCON, RITES, Maytas Infra Pvt Ltd, L&T and TATA projects.
The UBI also alleged that the TIL was taking loans from the bank since November 2005 when it was sanctioned credit facilities of Rs 15 crore to complete the work orders in construction and infrastructure activities.