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CBI files case against YSR Congress MP in ₹234 cr bank fraud
Apart from Kanumuru Raghurama Krishnam Raju, his company Ind Barath Power Gencom Ltd., and six other directors of the company were also booked in the case.
The Central Bureau of Investigation (CBI) on Thursday registered a case against YSR Congress party parliamentarian Kanumuru Raghurama Krishnam Raju for allegedly duping a consortium of banks of ₹237.84 crore by producing forged documents between 2012 and 2017.
The case was registered under Section 120 (b)(criminal conspiracy), 420 (cheating), 467 (forgery of documents), 468 (forgery of electronic record) and 471 (using forged documents for criminal purposes) of the Indian Penal Code, following a complaint lodged by State Bank of India, Chennai.
Raju represents Narasapuram parliamentary constituency. He, however, turned rebel against the YSR Congress party which filed a petition before Lok Sabha speaker Om Birla last year, seeking his disqualification.
Apart from Raju, his company Ind Barath Power Gencom Ltd and six other directors of the company were also booked in the case. The corporate office of the company is based in Hyderabad and the plant is located in Toothukudi, Tamil Nadu.
According to the FIR, Raju and others had allegedly diverted funds, manipulated books of accounts to defraud the consortium of banks, comprising Axis Bank, SBI, Indian Overseas Bank, UCO Bank, Syndicate Bank, Bank of India, Punjab National Bank and ILFS Financial Services Ltd.
The fraud came to light during the forensic audit conducted by an audit firm at the request of the consortium of banks. The audit took into account the company’s transactions between May 25, 2012, and May 21, 2017, and the report was submitted on July 24, 2020.
The FIR said Ind Barath Power Gencom Ltd, a power plant, was set by the MP and others at Tuticorin in Tamil Nadu, with a capacity of 189 MW. The company commenced its commercial operations in January 2010 but was shut down in May 2017. The company’s account in the consortium of banks turned into a non-performing asset (NPA) on May 28, 2017.
Reacting to the development, the YSRCP lawmaker said the FIR lodged against him by the CBI was fabricated without any facts. He, however, said he would fully cooperate with the CBI in the investigation and would come out clean in the case.
Raju alleged that the case was registered under pressure from his own party leaders and demanded the CBI should also disclose the data of the telephone calls between the Andhra Pradesh chief minister’s office and SBI authorities in Chennai.
