RAJAMAHENDRAVARAM : The Central Bureau of Investigation (CBI) has registered a case against Sri Krishna Stockists and Traders based out of I Pangidi in West Godavari district for defrauding Canara Bank of Rs 338 crore.
CBI sleuths in Hyderabad identified promoters of the company, booked under 120b r/w 420, 468, 471 and 477-A sections of the IPC, as Thota Kanna Rao and his wife Venkataramani. The firm, which came into existence in 2009 for trading of maize and neem seeds, was sanctioned Rs 35 crore by Indian Bank and another Rs 30 crore by IDBI Bank as working capital loan.
Later, the company secured loan from Canara Bank to increase its working capital, for which the promoters allegedly submitted fake documents and audit balance sheets. Later, they diverted the funds to other activities. According to the FIR, the promoters belong to Rajamahendravaram. The CBI has seized all their assets.