The Central Bureau of Investigation (CBI), Hyderabad recently registered a case against Nandigrain Derivatives and SPY Agro Industries and their directors and unknown public servants and private persons for cheating Bank of Baroda to the tune of ₹ 61.86 crore.
The accused include former Member of Parliament late SPY Reddy, his son Sreedhar Reddy Sajjala, their associates V. Sashi Reddy.
According to the FIR, in 2012 the bank sanctioned a cash credit of ₹ 27 crore to Nandigrain Derivatives for manufacturing maize starch and its by-products.
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It was also sanctioned a cash credit facility by Canara Bank with ₹ 10 crore, under consortium with BOB as lead bank, for the working capital facility.
The accused are reported to have diverted a major portion of the fund in the goods sold to SPY Agro Industries, which were not realised.
“They also made several transactions to related companies which are not in the list of creditors as per the stock statement,” the FIR said.
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Payments were also made to some individuals who might be relatives of key managerial personnel of Nandigrain Derivatives.
In 2015, the account became a non-performing asset (NPA) with an outstanding balance of ₹ 30.64 crore and the defrauded amount ₹ 61.86 crore includes un-recovered interest from the date of NPA to September 2021 by way of diverting and using funds for personal benefits.
Based on the complaint lodged by Bank of Baroda, the Anti Corruption Branch of CBI registered a case under sections 120B, 420, 468 and 471 of the Indian Penal Code and relevant sections of Prevention of Corruption Act and launched a probe.