House of Vakati Narayana Reddy, in Nellore was raided for over nine hours

CBI raids Andhra MLC in Nellore Bangalore and Hyd for bank fraudImage credit: Screenshot/Facebook
news Crime Saturday, May 13, 2017 - 09:20

A team of Central Bureau of Investigation (CBI) on Friday raided the house of AP Telugu Desam Party (TDP) MLC Vakati Narayana Reddy, in Nellore, for over nine hours after a fraud case was registered against him.

Following a complaint lodged by Industrial Finance Corporation of India (IFCI) against a firm owned by Narayana Reddy, located at Banjara Hills in Hyderabad.

The New Indian Express reported that, the complaint was filed against the firm along with its managing director, a director and the chief finance officer.  

Apart from that IFCI lodged a complaint against, five other companies based in Hyderabad and Pune, and unknown public servants alleging fraud, misrepresentation and cheating.

The raid was conducted at three places simultaneously, Nellore in Andhra Pradesh, Hyderabad in Telangana and Bengaluru in Karnataka. VNR Infrastructures Ltd (VIL), the firm owned by the MLC, had reportedly applied for loans to execute Rs 190 crore worth projects in financial year 2014-2015 by placing the documents of certain immovable properties as security.

“The value of the properties kept as security was inflated with the malafide intention to not repay the loan. The accused have thereby caused a loss of Rs 205.02 crore to IFCI Ltd," stated the CBI release quoted by Times of India.

Following the complaint, CBI's Banking Security and Fraud (BS&F) unit of Bangalore have filed a case under various sections of the IPC and the Prevention of Corruption Act.

According to the Deccan Chronicle, the banks have claimed that the companies had borrowed Rs 203.09 crore from the State Bank of India, Rs 55.42 crore from State Bank of Hyderabad, Rs 73.09 crore from Bank of Baroda and Rs 111.67 crore from Indian Overseas Bank. The banks have also claimed to have sent notices in August 2016 to seize the properties in lieu of the unpaid loans to the extent of Rs 443.27 crore.

The CBI sealed all his properties including his residence at Nellore and is expected to question Narayana Reddy and the other accused in connection with the case.

 

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