According to the CBI, a company named Ind Barath Power Ltd. got a sanction of Rs 2,655 crore from three NBFCs: Power Finance Corporation; India Infrastructure Finance Corporation and Rural Electrification Corporation.
Hyderabad: The Central Bureau of Investigation has conducted searches in a bank fraud case in Hyderabad at YSR Congress leader Raghuram Krishnam Raju's residence and other places. Raids are still ongoing at two of his residences and four offices.
According to the CBI, a company named Ind Barath Power Ltd. got a sanction of Rs 2,655 crore from three NBFCs: Power Finance Corporation; India Infrastructure Finance Corporation and Rural Electrification Corporation.
This loan was sanctioned for the coal-based thermal power project, but, the company diverted funds.
The TDP leader, who joined the YSR Congress Party (YSRCP) this year is considered to be the strongman of West Godavari district.
There has been an allegation that Hyderabad-based Ind-Barath Power (Madras) Ltd, Ind-Barath Power Infra Ltd and their directors defrauded and siphoned off public money.
Further, their directors diverted the funds (loans) that had been disbursed for the implementation of a 660 MW coal-based power project in Tuticorin district of Tamil Nadu.
Later, the lenders complained that the accused and their entities made various fraudulent transactions, incurring major losses to financial institutions.
Read Exclusive COVID-19 Coronavirus News updates, at MyNation.