VIJAYAWADA: The Central Bureau of Investigation (CBI) Visakhapatnam Range has registered a case against Omkara Vijayalakshmi Strips Pvt Ltd, its four directors, and unknown public servants and private persons for allegedly defrauding Union Bank of India of Rs 24.81 crore by submitting false financial information, inflating stock and book debts, and diverting loan funds through suspicious entities.
The case was registered following a written complaint filed by Chinari Srikanta Patro, Assistant General Manager, Union Bank of India, Vijayawada Zonal Office, on July 14, 2026.
The main accused were identified as Kota Bhanu Prasad (A2), Kota Sravani (A3), Kota Prudhvi Venkata Teja (A4) and Kota Rahul Sai Balaji (A5).
According to the complaint, Omkara Vijayalakshmi Strips, incorporated in 2017 and engaged in manufacturing ERW and galvanised pipes and other steel products, approached the bank’s Suryaraopeta branch in 2024 to take over its loan from Karur Vysya Bank.
The company allegedly submitted false financial statements and other documents. Based on the submissions, the bank sanctioned fund-based and non-fund-based credit facilities totalling Rs 24.98 crore on February 22, 2024. The facilities included term loans, cash credit limits and bank guarantees/letters of credit. The company offered stocks, book debts and plant and machinery as primary security, besides immovable properties as collateral.
Only stock worth Rs 25 lakh found during an audit
However, a subsequent inspection allegedly revealed a major discrepancy between the stock declared by the borrower and the stock physically available. While the company reported stock worth Rs 23.85 crore on May 28, 2025, only stock worth Rs 25 lakh was found during an audit on June 27, 2025.
The company also allegedly failed to provide supporting documents for book debts and age-wise debtor details.
The bank further alleged that substantial funds were remitted to Karur Vysya Bank without corresponding sales realisations.
Transactions were allegedly routed through current accounts and involved suspicious dealings with limited entities. The bank also found unauthorised changes in the company’s directorship, changes in statutory auditors and movement of stock without informing the bank.
Two directors reportedly resigned within six months of the loan sanction without obtaining prior approval from the sanctioning authority.
They subsequently floated another company, Nerro Steels Pvt Ltd, which reportedly has a charge of `60.1 crore with Canara Bank.
The complaint also alleged that major payments were made to Maruthi Traders, while credits of Rs 32.19 crore out of total credits of Rs 67.54 crore were received from Sri Durga Bhavani Steels. The CBI booked the accused under provisions relating to criminal conspiracy, criminal breach of trust, cheating, forgery and use of forged documents, besides relevant provisions of the Prevention of Corruption Act.
