HYDERABAD: Cyberabad’s Economic Offences Wing on Saturday arrested one of the Directors of AFS Constructions Pvt Ltd for availing a working capital loan of Rs 1.30 crore by submitting forged documents and later defaulting to pay the loan amount to the Balanagar branch of Canara Bank.
The accused – Mohammed Faiz Ahmed, Mohammed Chand Pasha – ran a construction company at Ramanthapur. The duo allegedly took bank loans to the tune of Rs 1.30 crore in 2020, claiming that they were employed to work on the electrical and pipeline work at Khammam municipality under Mission Bhagiratha.
The accused then submitted forged documents to show that they were progressing in installation of water supply to the municipality. “However, in 2022, the company defaulted on the loans and caused a huge loss to the government exchequer,” Cyberabad EOW ACP M Hussaini Naidu said.
The police revealed that the accused may have colluded with the ex-chief manager to get away with their fraud. “In that regard, we arrested ex-manager G Srinivasa Babu a few days ago and he has been remanded,” the ACP said.
The fraud came to light in 2022, after a new Assistant General Manager was transferred to the bank branch. The case was initially registered in Hyderabad’s CCS police station but was later transferred to Cyberabad’s EOW.
While the main accused, Ahmed, has been produced before the court for remand, his business partner Pasha is still absconding, the police said.