HYDERABAD: In a relief to Andhra TDP MLA Kanumuri Raghu Rama Krishnam Raju, the Telangana High Court on Thursday suspended the orders of the Reserve Bank of India (RBI) and the State Bank of India (SBI) that declared the accounts of Ind-Barath Power Gencom Ltd, a company linked to Raju’s family, as fraudulent.
Raghu Rama Raju, along with his daughter Indira Priyadarshini, served as part-time non-executive directors of the company. The case, initiated by a complaint from the SBI, accuses the company and its directors of syphoning off `947 crore of bank funds. The CBI booked a case against Raju and his family alleging using forged documents.
The RBI and SBI, based on an inquiry by the Fraud Identification Committee of SBI, had declared the accounts of the company as fraudulent. Raju and his family then seeked legal recourse challenging the orders in the High Court. Senior counsel Vikram Poserla, representing Raju and his family, argued that despite multiple requests, SBI had not provided a complete forensic audit report, which was necessary to substantiate the claims of fraud. The court adjourned the matter to August 28.