HYDERABAD: The Central Bureau of Investigation (CBI) Hyderabad has registered a case against two firms Nandi Grain Derivatives and SPY Agro Industries and their directors late former MP SPY Reddy, his son Sreedhar Reddy Sajjala, their associates V Sashi Reddy, unknown public servants and private persons for cheating Bank of Baroda (BoB) to the tune of Rs 61.86 crore.
Nandi Grain Derivatives was sanctioned a cash credit of Rs 27 crore in the year 2012, for manufacturing maize starch and its by-products. The company was also sanctioned Cash Credit Facility by Canara Bank with Rs 10 crore under consortium with BOB as lead bank for the Working Capital Facility.
The funds were diverted in the form of a major portion of the goods sold to SPY Agro Industries, which were not realised. Further, many payments were made to related companies which are not in the list of creditors as per the stock statement. It was also found that payments were made to some individuals who might be relatives of key managerial personnel of Nandi Grain Derivatives.
The account became a Non Performing Asset (NPA) in the year 2015, with an outstanding balance of Rs 30.64 crore. The defrauded amount of Rs 61.86 crore includes unrecovered interest from the date of NPA in 2015 to September 2021 by way of diverting and siphoning off funds. The allegations prima facie disclose cheating, forgery offences and using fabricated documents. On a complaint by BoB, CBI registered a case under Sections 120B, 420, 468 and 471 of the IPC and under Prevention of Corruption Act.The Central Bureau of Investigation (CBI) Hyderabad has registered a case against two firms Nandi Grain Derivatives and SPY Agro Industries and their directors late former MP SPY Reddy, his son Sreedhar Reddy Sajjala, their associates V Sashi Reddy, unknown public servants and private persons for cheating Bank of Baroda (BoB) to the tune of Rs 61.86 crore.
Nandi Grain Derivatives was sanctioned a cash credit of Rs 27 crore in the year 2012, for manufacturing maize starch and its by-products. The company was also sanctioned Cash Credit Facility by Canara Bank with Rs 10 crore under consortium with BOB as lead bank for the Working Capital Facility.
The funds were diverted in the form of a major portion of the goods sold to SPY Agro Industries, which were not realised. Further, many payments were made to related companies which are not in the list of creditors as per the stock statement. It was also found that payments were made to some individuals who might be relatives of key managerial personnel of Nandi Grain Derivatives.
The account became a Non Performing Asset (NPA) in the year 2015, with an outstanding balance of Rs 30.64 crore. The defrauded amount of Rs 61.86 crore includes unrecovered interest from the date of NPA in 2015 to September 2021 by way of diverting and siphoning off funds. The allegations prima facie disclose cheating, forgery offences and using fabricated documents. On a complaint by BoB, CBI registered a case under Sections 120B, 420, 468 and 471 of the IPC and under Prevention of Corruption Act.