CBI books IVRCL Sudhir Reddy, others in Rs 4800 Cr bank fraud

The CBI conducted searches and booked cases against IVRCL, the Hyderabad-based infrastructure company, on the charges of default in payment of huge loans. The cases were booked against IVRCL Managing Director E Sudhir Reddy, Joint MD R Balarami Reddy and public servants for alleged bank fraud of over Rs 4,800 crore. The complaint was given by the State Bank of India.

An FIR was against them and some officials for defrauding eight public sector banks of Rs 4,837 crore. The IVRCL has been working for over two and half decades in projects spanning water, irrigation, transportation, buildings and industrial structures, power distribution and transmission, operations and maintenance and mining.

The CBI conducted searches at the residences and the offices of the accused persons in Hyderabad and other places. Several incriminating documents have been seized.

The SBI has alleged that the accused in connivance with unknown public servants and others defrauded the consortium of public sector banks. These are State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank, Union Bank of India and caused a loss of Rs 4,837 crore to the banks.

The CBI FIR quoted the documents and said that the IVRCL used the Letter of Credits to pay other parties without any records of purchase related transactions. The funds were routed to the company and eventually misappropriated the banks.