CBI registers bank fraud case of Rs 7,926 crore against Transstroy; Rs 314 crore case against Chennai firm

The CBI has booked Hyderabad-based Transstroy (India) Ltd and its directors for alleged bank fraud of over Rs 7,926 crore in a consortium led by Canara Bank, in one of the biggest banking scams in the country, officials said on Friday. The agency carried out searches at the premises of the company and the accused directors, including former Telugu Desam Party (TDP) MP Rayapati Sambasiva Rao, which led to the recovery of incriminating documents, its spokesperson said in a statement.

Canara Bank has filed a complaint of fraud to the tune of Rs 7,926 crore against a Hyderabad based company, while SBI has filed a complaint of fraud of Rs 314 crores against a Chennai firm. Both accounts have become NPA.

Rao, an additional director in the company, has been named in the FIR as accused, besides the company, its chairman-cum-managing director Cherukuri Sridhar and another additional director Akkineni Satish. It was alleged that the private firm based in Hyderabad and its directors had availed credit facilities on multiple banking arrangements. "The consortium was formed with other banks, led by Canara Bank. It was further alleged that the accused had involved in falsification/fabrication of books of accounts, fudging of stock statements, tampering of balance sheets, round tripping of funds, etc.," CBI spokesperson R K Gaur said.

The Central Bureau of Investigation (CBI) has alleged that loans were misappropriated by the directors causing a loss of Rs 7,926.01 crore to the consortium members. "Searches were conducted at the premises of private company/other accused at Hyderabad and Guntur, which led to recovery of incriminating documents," Gaur said.

According to the CBI, diamantaire Nirav Modi had allegedly siphoned off Rs 6,000 crore while his uncle Mehul Choksi had swindled Rs 7,080.86 crore, both making it the country's biggest banking scam at over Rs 13,000 crore.

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