Enforcement Directorate (File Photo | PTI) 
Telangana

ED opposes Servomax MD’s bail plea in Rs 395 crore scam

The investigators recorded the statement of directors of these companies on getting loans by producing fake bills as expenditure.

Express News Service

HYDERABAD: Opposing the bail plea, the Enforcement Directorate (ED) submitted a report to the Telangana High Court on Wednesday saying that Servomax India Private Limited (SIPL) had taken loans from various banks and its MD A Venkateshwarlu showed losses of about Rs 395 crore and transferred this amount to his benami companies.

The ED noted that the loans taken from SBI, IOB, Axis Bank and others were transferred to Venkateshwarlu’s benami companies and used to buy assets. The ED added that the MD did not disclose these facts during the probe regarding the loan amount and its expenditure.

Venkateshwarlu has filed a bail petition in view of the case registered for misappropriation of funds. The consortium of banks granted about Rs 435 crore as capital loan to SIPL, but its MD embezzled this money by setting up shell companies in the name of his employees such as Putron Marketing Limited, Neutro Power Systems, Alphra Infra etc.

The investigators recorded the statement of directors of these companies on getting loans by producing fake bills as expenditure. The ED pleaded before the court that if bail was granted to Venkateshwarlu, he might influence the witnesses and may tamper with the evidence.

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