VIJAYAWADA: The Central Bureau of Investigation (CBI) is conducting raids on the offices and residences of former Member of Parliament from Andhra Pradesh, Rayapati Sambasiva Rao, in an alleged case of defaulting loans taken from banks.
The former TDP MP Sambasiva Rao's construction firm Transstroy India Limited is said to have defaulted Rs 300 crore loans to the banks. The CBI sleuths conducted raids on the residences and offices of Sambasiva Rao in Hyderabad, Guntur and Bengaluru and also on the premises of the Transstroy Managing Director Sridhar Cherukuri and others, sources said.
Sambasiva Rao is a five-time MP representing Narsaraopet Lok Sabha constituency and his firm bagged the prestigious Polavaram multi-purpose irrigation project contract during the previous TDP regime. However, Transstroy backed out of the contract later.
CBI sources said a case was registered against Sambasiva Rao following a complaint from consortium of banks led by Union Bank to which the firm defaulted loans to the tune of Rs 300 crore. Searches are continuing till last reports came in.