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Andhra Pradesh: ED raids properties of former TDP MP, aides
Enforcement Directorate authorities on Tuesday conducted searches in the residences and offices of former MP and Telugu Desam Party leader Rayapati Sambasiva Rao and his associates in Transstroy (India) Private Limited
Hyderabad
Enforcement Directorate authorities on Tuesday conducted searches in the residences and offices of former MP and Telugu Desam Party leader Rayapati Sambasiva Rao and his associates in Transstroy (India) Private Limited, in connection with alleged siphoning of bank loans, people familiar with the matter said.
The raids began early in the morning at nine different locations at Jubilee Hills, Manikonda, Punjagutta and other places in Hyderabad, besides in Guntur in Andhra Pradesh. As many as 15 teams of the ED took part in the searches, it continued till late in the evening.
An ED official privy to the development said the searches were going on in connection with the alleged default of loans to the extent of over ₹9,000 crore, taken from various banks by Transstroy India Private Limited.
Apart from that of the TDP leader, the ED conducted searches on the offices and residences of Malineni Sambasiva Rao, a director with Transstroy India Private Limited. The ED suspects siphoning of money from Transstroy into various companies in which Sambasiva Rao is the director.
Transstroy, which had bagged the contract for the multi-crore Polavaram Irrigation Project in Andhra Pradesh, was terminated from the contract after it failed to stick to the deadline of the project works. There were allegations against the company that it had siphoned off the loans borrowed from various banks to execute the project.
In April 2020, the former MP has been charged under Section 120 (b), 420, 406, 468, 477 (a), Section 13 (2) of Prevention of Corruption Act, following the complaint of Union Bank of India.
In the complaint, the bank said Transstroy had defaulted clearance of loans to the banks. The CBI sleuths raided on Sambasiva Rao’s house and his offices in Hyderabad, Vijayawada, Guntur and Delhi. It alleged that the company had defaulted a loan of a whopping ₹8,832 crore.
The former MP could not be reached for comment.
