HYDERABAD: Enforcement Directorate officials on Tuesday conducted searches at the office of Transstroy India Private Limited, which is owned by former MP Rayapati Sambasiva Rao in connection with Rs 9,394 crore loan fraud.
The agency officials carried out raids at the premises of Sambasiva Rao, who is the director of Transstroy Power Project, Techno Unit Infra Tech and Kakatiya Crystal Power Limited company which is located in Punjagutta. The agency made searches at his residence at Jubilee Hills, and offices of other firms in Manikonda and several other locations in Hyderabad.
Officials also carried out searches at Sambasiva Rao’s residence and offices in Guntur. The agency registered a case on the basis of a CBI FIR under the Prevention of Money Laundering Act (PMLA) where the company obtained loans from various banks, including Allahabad Bank, Bank of Maharashtra, Dena Bank, Vijaya Bank, Andhra Bank, Bank of India, UCO Bank, Indian Bank Corporation Bank and others.
The agency reportedly identified that Transstory diverted the funds to several shell companies allegedly floated by Sambasiva Rao under the name of his company employees. The agency also suspects that the Transstroy Power project also diverted the funds from Hyderabad to a Singapore company, which is also a shell company allegedly belonging to the Rayapati family.
The ED in the ongoing investigation found irregularities in audit reports where the company MD and other promoters committed offences under Money Laundering with fake documents, forgery, and falsification of documents with intent for criminal conspiracy. The ED is also investigating whether the company violated FEMA when it transferred the funds out of India.
The searches went on till late into the night on Tuesday, and the team also seized the electronic and digital evidence after seizing account log books. Trasstroy was initially the contractor for the Polavaram irrigation project.