The Central Bureau of Investigation (CBI) has registered a case against Hyderabad-based Transstroy (India) Ltd, its promoter and former Telugu Desam Party (TDP) MP Rayapati Sambasiva Rao, and other directors for allegedly cheating a consortium of banks led by Canara Bank of Rs 7,926 crore, officials said on Friday.
The FIR has been registered based on a complaint by Canara Bank, leader of a consortium of lenders, its spokesperson said in a statement.
People familiar with the development said on Friday that this could be the biggest banking scam in the country so far, surpassing the amount embezzled by fugitive diamantaire Nirav Modi, who owes around Rs 7,700 crore to Indian banks.
The country's premier investigation agency has named Transstroy, its chairman-cum-managing director Cherukuri Sridhar and additional directors Rayapati Sambasiva Rao and Akkineni Satish in the FIR and alleged that loans were misappropriated by the directors.
The CBI has alleged that the private firm based and its directors had taken credit facilities on multiple banking arrangements with a consortium of banks led by Canara Bank, causing a loss of Rs 7,926.01 crore to the (consortium) members.
"Searches were conducted on the premises of private company/other accused in Hyderabad and Guntur, which led to the recovery of incriminating documents," said a CBI official. Transstroy is currently under liquidation process as per an order by the National Company Law Tribunal (NCLT) in September 2019.
"The consortium was formed with other banks, led by Canara Bank. It was further alleged that the accused had been involved in falsification/fabrication of books of accounts, fudging of stock statements, tampering of balance sheets, round-tripping of funds, etc.," CBI spokesperson R K Gaur said.