CBI raids Sujana Group’s premises, suspects CA’s role in Rs 71-crore Andhra Bank fraud

The Central Bureau of Investigation (CBI) on Sunday continued its raids at former union minister and TDP leader YS  Chowdary, aka Sujana Chowdary’s properties.

Published: 03rd June 2019 07:52 AM  |   Last Updated: 03rd June 2019 07:52 AM   |  A+A-

CBI’s Bengaluru unit conducts raids at Sujana Group’s premises near Nagarjuna Circle on Sunday | Express

By Express News Service

HYDERABAD:  The Central Bureau of Investigation (CBI) on Sunday continued its raids at former union minister and TDP leader YS  Chowdary, aka Sujana Chowdary’s properties. At least 20 officials of the Bank Securities and Fraud Cell wing of Bengaluru-based CBI unit carried out search operations on Chowdary’s premises in connection with the alleged Rs 71-crore Andhra Bank fraud.

According to officials, Chowdary allegedly took help of a chartered accountant of the Best and Crompton Engineering Projects Limited in order to divert funds of Rs 71.46 crore to other friendly entities. Post the raids, the CBI officials collected documents and later seized Chowdary’s property located near Nagarjuna Hills in Punjagutta.

ALSO READ | CBI raids Sujana Chowdary’s office, house in Hyderabad, AP

The CBI notice, stated that no one is allowed to enter into these premises and no documents or any other material would not allowed to take out without prior permission of CBI officials. Meanwhile, the Andhra Bank has informed the Reserve Bank of India (RBI) that the fraud was based on Forensic Audit report. 

The officials have revealed that the Best and Crompton Engineering Projects Limited and its directors Meka Ramakrishna Varma, Ravinarayanaswamy Balachandran, K Srinivas Kalyan Rao and Seshagiri Rao with an intention to fraud the bank availed the loan credit limits for working capital requirements and committed the offence by diverting the funds. The suspects allegedly committed the crime, by showing fictitious sales and making false book entries and transferring the funds. Further, an internal report submitted to the CBI officials said that the chartered accountant had played a key role. 

The CBI suspects that the Best and Crompton Engineering Projects Limited obtained the loan amount of Rs 71.46 crore from the Andhra Bank, and allegedly diverted the funds to Tejaswini Engineering Private Limited, Ganga Exim Private Limited, SR Nagar, Global Forgings Limited, Godavari Exports and imports with the directions of YS Chowdhary.

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