CBI files charge sheet against rebel YSRCP MP in loan fraud case

K. Raghu Rama Krishna Raju, 15 others charged with causing loss of ₹947.71 cr. to consortium of lenders

Published - January 01, 2022 06:11 am IST - New Delhi

The Central Bureau of Investigation has filed a charge sheet against rebel YSRCP MP and then chairman/managing director of Ind-Barath Power Madras Limited, K. Raghu Rama Krishna Raju, and 15 others for allegedly causing a loss of ₹947.71 crore to a consortium of lenders.

Among those arraigned are Ind-Barath Power Madras Limited, Mr. Raju and then director Madhusudhana Reddy. The company’s eight sister entities have also been named; apart from Sokeo Power Private Limited, its managing director, Y. Nagarjuna Rao; and two chartered accountants, M. Sreenivasulu Reddy and Pravin Kumar Jabad.

In April 2019, on the Central government’s order, the CBI had taken over the probe into a case registered with the Economic Offences Wing of the Delhi Police in October 2018, against five accused persons, including a Hyderabad-based company and its directors.

The agency found that the company — through its chairman/managing director — had allegedly taken about ₹947.71 crore from the consortium comprising the Power Finance Corporation Limited, the Rural Electrification Corporation Limited and India Infrastructure Finance Company Limited for setting up a thermal power plant at Tuticorin in Tamil Nadu.

However, as alleged, the company neither completed the project nor complied with the terms and conditions of loan agreements. The accused persons transferred/diverted the disbursed funds to create fixed deposits with the Bank of India and the UCO Bank and to pay advances to contractors.

“Subsequently, the accused availed themselves of loans against these fixed deposits and advances paid to the contractor for the group companies and later, due to non-repayment of loan amount, the said fixed deposits were adjusted against the loan accounts, leading to loss to the lenders,” said the agency.

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