A team of CBI officials conducted an extensive search on the premises of former MP Rayapati Sambasiva Rao in Guntur and other places on Tuesday in connection with a complaint by a bank consortium.
Rayapati was away in Hyderabad during the raid, but CBI officials spoke to him over phone to elicit certain information. Sources said the search was conducted based on a complaint filed by the Union Bank of India consortium, related to a Rs 275 crore loan that Transstroy Limited obtained for execution of the Polavaram project.
Rayapati was a director in the company.
Transstroy was removed from the project by the previous TDP government last year, though Rayapati was the party MP.
The Union Bank, in its complaint, reportedly alleged that Transstroy diverted the funds for other purposes in contravention of the loan terms.