Big financial institution fraud! Consortium of banks undergo lack of over Rs 4,837 crore, CBI probe underway

Image Source : FILE PHOTO Consortium of banks undergo lack of over Rs 4,837 crore. Representational picture
The Central Bureau of Investigation (CBI) has registered a case towards a personal firm primarily based at Hyderabad and others together with its managing Director, Joint Managing Director, and unknown public servants/others on a grievance from State Bank of India, Hyderabad.

It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of Public Sector Banks, consisting of State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank, Union Bank of India and triggered a lack of Rs. 4837 crore (approx).

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It was additional alleged that the borrower firm represented by its administrators had availed varied credit score limits from a consortium of banks, led by SBI and cheated the banks, with out repaying the mortgage quantity. It was additionally alleged that as per the Forensic Audit Report, the corporate made funds to associated events by way of LCs, with out recording any buy transactions within the books and routed the funds to the account of the corporate, thereby misappropriated the financial institution funds. Searches had been carried out at this time on the residential and official premises of the accused at Hyderabad which led to the restoration of a number of incriminating paperwork. The investigation underway.

Name of the accused 

IVRCL Limited, Hyderabad.
E. Sudhir Reddy, Managing Director of IVRCL Ltd.
R Balarami Reddy, Joint Managing Director of IVRCL Ltd.
Other unknown public servants and unknown others.
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