A new case has been filed by the Central Bureau of Investigation (CBI) against YSRCP rebel MP from Narasapuram Raghu Rama Krishna Raju in a case related to alleged defrauding banks to the tune of Rs 237.84 crore. Based on a complaint from a Deputy General Manager of a branch of State Bank of India in Chennai, the case registered by the CBI names seven individuals including MP Raghu Rama Krishna Raju, and his firm Ind Barath Power Gencom Ltd. The accused have been booked under the charges of criminal conspiracy, cheating, forgery of valuable security, forgery for the purpose of cheating, using forged documents as genuine and criminal misconduct by a public servant.
According to the complaint, the accused had allegedly manipulated books of accounts with the intent of defrauding a consortium of lending banks including SBI, Axis Bank and Indian Overseas Bank. The alleged fraud came to light after a forensic audit was carried out for a five-year period from May 2012 to May 2017, the complaint said.
A few months ago, the Narasapuram MP was booked in another case by the CBI, in relation to an alleged loan default case related to the same firm. The case was registered based on a complaint from Punjab National Bank, against the borrowing firm and several individuals, for allegedly causing a loss of approximately Rs 826.17 crore to Punjab National Bank and other consortium banks. Searches were conducted at the MP’s properties at Hyderabad and his constituency in Andhra Pradesh’s West Godavari district.
Similar searches were also conducted by the CBI in April 2019, over allegations of loan default. The MP’s power company Ind Barath was reportedly sanctioned a loan of Rs 2,655 crore loan by three non-banking financial corporations (NBFCs) to set up a thermal power project, and was accused of defaulting on about Rs 600 crore of the loan amount. At the time, the MP had said that his company could not repay the loans due to losses.
Raghu Rama Krishna Raju has been at odds with his party for several months now. He has been making regular appearances on TV channels considered to be aligned with the opposition TDP, criticising his own party leadership and policies.
Following the latest case booked by the CBI, the MP has now alleged that such cases are being fabricated after disputes arose between him and Chief Minister Jagan Mohan Reddy. Alleging that there was a conspiracy behind the case, he said, “I urge the CBI to make an inquiry into the (phone) conversations between Punjab National Bank Chairman and Managing Director, a particular MP from my party, the Chief Minister's Office and SBI MD Challa Sreenivasulu Setty.”
He also alluded to Jagan’s exemption from personal appearance in the disproportionate assets cases registered by the CBI and said, “Even if inquiry is not done just because I asked, sooner or later, justice will prevail.”