HYDERABAD: For the first time, the bank security and fraud branch of the Central Bureau of Investigation (CBI) has named a dead man, M Madhavaiah who was the former director of a city-based real estate company, as an accused in a bank fraud case worth Rs 62.01 crore.
The agency has booked cases of criminal conspiracy, criminal breach of trust, cheating, forgery for the purpose of cheating and using forged documents as genuine against the VNR Infrastructure Limited located in Banjara Hills and its managing director (MD) Vakati Narayana Reddy, directors Ganji Praveen Kumar, R Srikanth Reddy, P Mahindhar Reddy and M Madhavaiah, who is no more.
VNR Infrastructure Limited (VIL) had obtained a loan from the Bank of Baroda’s corporate financial services branch a few years ago and failed to repay. The bank officials, after noticing some suspicious transactions by the VNR Infra management during 2015-2016 and 2016-2017 through its account, reported it to the Reserve Bank of India (RBI) after which the fraud came to light.
According to sources, the real estate firm and its directors have cheated the bank by siphoning off funds which were sanctioned for business purposes. It is learned that the amount was diverted to other business activities rather than for the VNR infra, which is clearly misusing the bank’s funds.
After diverting the bank’s funds, the management allegedly had even produced account statements claiming that they faced financial losses due to a sudden halt of their ongoing projects located in Hyderabad.