HYDERABAD: The management of Ind-Barath Power (Madras) Limited had allegedly delayed a project in Tamil Nadu by quoting higher expenditure against the existing estimate.
The CBI found that the power company owned by YSRC rebel MP in Andhra Pradesh K Raghurama Krishnam Raju had delayed the construction work of the project so as to divert funds to other accounts.
“When the lenders visited the project site, they saw that the work was progressing slowly even though funds were available. The borrowers promised the lenders that they expedite the project after opening LCs,” CBI sources said.
The lenders had hired financial advisor TR Chada and Company to inquire into the progress of work. Suspecting a violation of agreement, the lenders asked the accused company not to utilise funds provided under their loan.
Axis Bank’s role
Ind-Barath had opened a current account with Axis Bank and diverted funds to various accounts by quoting fake purchases and payments, the CBI found.
The Bureau also found fault with Axis Bank officials for colluding with the accused company. All the accounts to which funds were diverted were freezed by the CBI. On questioning the bank officials, it was found that the accused company offered them bribes.
