CBI files indictment against Jagan Reddy’s party MP and 15 others in loan fraud case
The CBI has filed an indictment against Congressman YSR Raghu Ramkrishna Raju and 15 other individuals and companies in an alleged case of rupee 947 crore loan fraud with Power Finance Corporation Limited (PFC) and other lenders, officials said on Friday.
In its indictment filed in a special IWC tribunal here, the agency alleged that Mr Raju’s company, the Ind Barath group, took advantage of Rs. 947.71 crore (approx) from a consortium lenders – PFC, Rural Electrification Corporation Limited (REC) and India Infrastructure Finance Company Limited (IIFCL) – for the establishment of a thermal power plant in Tuticorin, Tamil Nadu.
The CBI has cited borrowing company Ind-Barath Power Madras Ltd, its former CMD member, and Lok Sabha Raju, director Madhusudhana Reddy, as accused, officials said.
“It was further alleged that the borrowing company did not complete the project or comply with the terms and conditions of the loan agreements. The accused, including the borrowing company, allegedly transferred / embezzled the disbursed project funds to create term deposits with Bank of India & UCO Bank and to make advances to entrepreneurs, âsaid CBI spokesperson RC Joshi.
He said the CBI indictment stated that the accused allegedly used loans against those fixed deposits and advances paid to the contractor for the group companies and later due to the non-repayment of the amount of the loan, said FDs were adjusted against loan accounts, resulting in a loss to lenders.
“It was also alleged that the borrowing company, in collusion with other defendants, illegally used and siphoned off funds disbursed for the establishment of a thermal energy project. Thus, the defendant deceived the plaintiffs , lenders and caused a loss of Rs 947.71 crore (approx.) Upon investigation, an indictment was filed, âhe said.
Besides these defendants, eight sister companies – Ind-Barath Power Infra Ltd, Arkay Energy (Rameshwarm) Ltd, Sriba Seabase Pvt. Ltd, Ind-Barath Power Gencom Ltd, Ind-Barath Energy Utkal Ltd, Ind-Barath Power Commodities Ltd, Ind-Barath Energies Maharashtra Ltd. and Ind-Barath Thermal Power Ltd – were also placed on the list of accused.
The agency further appointed entrepreneur Sokeo Power Pvt. Ltd and its managing director Y Nagarjuna Rao and two chartered accountants M Sreenivasulu Reddy of M Sreenivasulu Reddy and Associates, and Pravin Kumar Jabad, partner, TR Chadha and Co. LLP in addition to C Venu, a head of Ind-Barath groups as accused , officials said.