The Central Bureau of Investigation (CBI) has registered a fraud case against Hyderabad-based IVRCL Limited, its former managing director E Sudhir Reddy, former joint Managing Director R Balarami Reddy and unknown public servants, others on a complaint from State Bank of India, Hyderabad.
It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of public sector banks consisting of State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank, Union Bank of India and caused a loss of Rs 4,837 crore to the banks.
The company allegedly availed various credit limits from a consortium of banks, led by State Bank of India and cheated the banks, without repaying the loan amount. A forensic audit done on the books of IVRCL revealed that the company made payments to related parties through letter of credits, without recording any purchase transactions in the books, and routed the funds to company's account and thereby misappropriated the bank funds.
Searches were conducted on Wednesday at the residential and official premises of the accused at Hyderabad which led to the recovery of several incriminating documents.