HYDERABAD: CBI officials who conducted searches at the residences of former TDP MP Rayapati Sambasiva Rao and Managing Director of Transstroy (India) Limited Cherukuri Sridhar on Tuesday and Wednesday, have unearthed the modus operandi of the company to defraud banks.
The CBI has registered a case against Transstroy for defaulting on a bank loan. Union Bank of India Deputy General Manager and Regional Head CVN Bhaskar Rao, in his report submitted to the CBI, had given a detailed account of how Transstroy fudged accounts. The company bagged the Polavaram multi-purpose irrigation project during the previous TDP regime. The CBI officials had gone through the 17-page report submitted by the Union Bank of India Deputy General Manager.
In the report, he stated that the findings of the stock auditor TR Chadha & Co, Hyderabad, pointed to the fraudulent nature of the conduct of operations by Transstroy. The company did not provide accounting records for the period of April to December 2017. “The site records of Polavaram project, which consisted of 88 per cent of the total inventory and 97 per cent of total work in progress Rs 727.31 crore, were not shown,” sources said.
The company did not provide access to its Tally accounting software and the balance sheet confirmation of debtors and creditors as on March 31, 2017 and December 31, 2017. The CBI officials also found that the work in progress at the project site was Rs 576.16 crore only as against the company’s claim of Rs 751.52 crore as Transstroy did not exclude the profit margin of 24 per cent.
“After taking up the Polavaram project contract, the debtors balance of less than 90 days was reported as Rs 206.62 crore, which was not supported by the ledger of the accounts. According to RA Bill No IPC 37, Transstroy had received Rs 3.06 crore, but no bank statement was provided in this regard. The company showed the receivable from Polavaram project as nil as on December 31, 2017. However, the Polavaram Project Authority had directly made payments to Transstroy.
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As per the stock statement in 2017, it had shown the drawing powers as Rs 1,328.26 crore as against Rs 486.58 crore, which was illegal. The CBI had registered a case against Transstroy located at Kavuri Hills in Hyderabad under Sections 120-b r/w 420, 406, 468 and 477A of IPC and Sections 13 (2) r/w 13 (1) (d) of the Prevention of Corruption Act. Transstroy and its MD Cherukuri Sridhar, Rayapati Sambasiva Rao, Director and Promoter Chairman and Suryadevara Srinivasa Babji, independent non-executive additional director of the company were mentioned as Accused No 1, 2, 3 and 4 respectively in the FIR.
SCAM TRAIL: As per the stock statement of Transstroy in 2017, the company had shown the drawing powers as Rs 1,328.26 cr as against the drawing powers of Rs 486.58 cr n The work in progress was Rs 576.16 cr only as against the company’s claim of Rs 751.52 cr as Transstroy had not excluded the profit margin of 24 per cent