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Ex-MP TDP used bogus companies to loot 7 billion rupees | India News

HYDERABAD: The CBI has said that Hyderabad-based Transstroy India Private Limited, which is embroiled in one of the country’s largest bank fraud amounting to 7,296 million rupees, had created shell companies on behalf of maids, sweepers and drivers and made them directors of diverting funds. Transstroy is owned by former TDP MP Rayapati Sambasiva Rao.
In its FIR, CBI alleged that firms such as Padmavati Enterprises, Unique Engineers, Balaji Enterprises and Ruthwik Associates scammed Rs 6,643 crore. “Nine companies are non-existent. They have been created to execute fraudulent operations with the help of employees ”, he alleged. A forensic audit by KPMG revealed that the defendant had requested a loan of 9,394 million rupees from Canara Bank and 13 other banks.
The bank and securities fraud cell of CBI in Bengaluru issued the FIR against Transstroy, Sambasiva Rao, the company’s CMD Cherukuri Sridhar and director Akkineni Satish. A case was filed under the sections of the IPC and the Prevention of Corruption Act. However, Rao denied any fraud and said that the CBI had wrongly filed the FIR. He said that he had only taken a loan of 700 million rupees.
For example, Padmavati Enterprises had Sudhakar Babu Gorantla, a Transstroy employee, as a director. Later, the company diverted Rs 1,848 million. Similarly, Unique Engineers had an invoice associated with M Sambasiva Rao, a former director of Transstroy.
The CBI said that Rs 7,153 crore was first transferred from the Transstroy account to nine suppliers: Padmavathi Enterprises, Balaji Enterprises, Ruthwik Associates, Unique Engineers, Subhakari Enterprises, Agastya Trade Links Private Ltd, Khanala Trading India, AS Associates and Vijay Engineering Equipment , and Rs 6,202 crore was returned to Transstroy account. Subsequently, the amount was diverted to related parties, special purpose vehicles and others. An amount of Rs 350 million was transferred to the promoters’ accounts. When the accounts of Sridhar and Director R Leela Kumar (between 2012 and 2014) were reviewed, it was discovered that 450 million rupees were transferred from the accounts of specific providers.
“The company has also allowed itself to manipulate its balance sheet,” the CBI alleged.
Transstroy’s ledger had shown that Rs 719 crore was canceled on April 1, 2016, stating that the unbilled revenue was treated as a sale.

Times of India