CBI books Hyderabad-based Totem Infrastructure for defrauding banks of Rs 1,400 crore

The complaint was filed by consortium leader UBI that was cheated of Rs 303.84 crore by the accused firm.
For representational purposes (File | Reuters)
For representational purposes (File | Reuters)

NEW DELHI: The CBI has registered yet another bank fraud case and booked Hyderabad-based Totem Infrastructure Ltd for allegedly defrauding a consortium of eight banks led by Union Bank of India (UBI) to the tune of Rs 1,394 crore.

After registering the case under the Indian Penal Code Sections relating to cheating, criminal conspiracy and criminal breach of trust and relevant provisions of the Prevention of Corruption Act, the agency also conducted searches at several locations in Hyderabad.

The FIR has named as accused Totem Infrastructure, Promoter Tottempudi Salalith and his wife and director of the firm Tottempudi Kavita.

The complaint was filed by consortium leader UBI that was cheated of Rs 303.84 crore by the accused firm.

“Loan was taken from a consortium of eight banks including UBI which was the lead bank. The total outstanding dues against the firm is Rs 1,394.43 crore. This account became Non-performing asset (NPA)on June 30, 2012 after loan and interest repayment default,” said a CBI official.

Totem Infrastructure engaged in infrastructure development projects like road projects, water works and building construction is alleged to have diverted funds and inflated expenditure, the official said.

The agency had on Wednesday filed a case against Chennai-based Kanishk Gold Pvt Ltd, for defrauding a consortium of 14 banks led by the State Bank of India to the tune of Rs 824.15 crore in the form of loans that have now been declared as NPA.

The agency is also probing three cases of credit fraud against diamantaires Nirav Modi and Mehul Choksi for cheating PNB to the tune of Rs 14,000 crore.

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