VIJAYAWADA: The CBI on Tuesday conducted simultaneous raids on the residences and offices of former TDP MP Rayapati Sambasiva Rao at various places, including Guntur, Hyderabad and Bengaluru in a case of alleged fraud, cheating and criminal breach of trust by Transstroy (India) Limited, a company promoted by him, and its directors involving an amount of Rs 264.31 crore plus interest. In its FIR, the CBI mentioned Rayapati, director and promoter chairman of Transstroy as the accused No 3.
The CBI registered the FIR on Monday based on a complaint by Union Bank of India. In the complaint lodged by SK Bhargava, regional head of Union Bank of India, Hyderabad, it was stated that Transstroy and its directors had indulged in diversion of funds to the tune of Rs 3,822 crore. The stocks statements were manipulated, which showed a difference of Rs 2,298.28 crore, the FIR said. Reacting to the CBI raids, Rayapati’s son and TDP leader Rayapati Ranga Rao said his family is in no way connected with Transstroy now. He said that 10 CBI officials came to their house and conducted searches.
Further, a special investigation audit was held by Canara Bank to prove the wilful default by Transstroy. In the report submitted on December 12, 2017, it found several irregularities. The CBI said Transstroy had written off Rs 794 cr0re and adjusted the sum towards reserves and surpluses.
“The company had also taken loans from the projects which were said to have been terminated and the matter was not informed to the consortium of banks. Writing off such entries which are hypothecated to the consortium of banks, using the reserves of huge amounts is a fraud,” the audit report noted. Receipts amounting to Rs 2,261.58 crore were found to have been routed by the company through non-consortium banks without the knowledge of existing consortium lenders amounting to a serious violation of trust and also the guidelines issued by the Reserve Bank of India (RBI). “Routing the proceeds through non-consortium banks is a diversion and siphoning of funds and criminal misappropriation,” the FIR said.
It was also revealed that the payer name as per the bank book was different from that of as per the bank statement. The audit report also said that the acquisition of interest in the hydel power project from Sri Jayalakshmi PowerCorp Limited for Rs 36.5 crore without the authorisation of consortium of banks also amounts to diversion of funds. “The procurement of similar machinery from two different companies with same machine and engine serial number from Volvo and Unique Engineers shows that the company has manipulated its records to secure more loans than the eligibility and fabricated the records,” the audit report said. “It was also found that Rs 5.28 crore was paid in 2013-14 towards purchase of gold and silver articles for donating them to temples, which is not the purpose for which the money was lent by the banks and therefore, the company had diverted the funds and shown the donations as part of the purposes for which loan was sanctioned,” the FIR said.
Not connected with Transstroy, says Rayapati’s son
Reacting to the CBI raids, Rayapati’s son and TDP leader Rayapati Ranga Rao said his family is in no way connected with Transstroy.
He said that 10 CBI officials came to their house and conducted searches.
“The CBI officials questioned my family members during searches. There is a locker in the house, but the key is with my father who was in Hyderabad,’’ he said, adding that the officials are bringing the key to open the locker. He added that the CBI officials got information about the presence of documents of Transstroy, cash, gold and diamonds in their house following which they conducted searches at the house. “Earlier, we were connected with Transstroy. But after the death of my mother, we have snapped all the connections with the company,’’ he said.
