CBI books Coastal Projects for 4,736 crore bank loan fraud
Hyderabad-based firm, homes of directors searched in city, Vijayawada
The Central Bureau of Investigation (CBI) on Saturday booked Hyderabad-based Coastal Projects Limited and its directors in connection with
`4,736 crore bank fraud in a consortium of banks led by the State Bank of India (SBI).
The SBI in its complaint (which is now a part of the FIR), alleged that the accused construction company, during the five-year period between 2013 and
2018, falsified account books and financial statements to show unrealisable bank guarantee
amounts as realisable investments.
CBI spokesperson R.C. Joshi said, “The company also allegedly gave wrong information on promoters’ contribution, converted receivables from related parties to investments to siphon off bank funds.”
The loan account of the company became a NonPerformance Asset (NPA) with retrospective effect from October 28, 2013 and subsequently declared fraud on February 20 last year.
“Searches were conducted at the residential and official premises of the accused at Hyderabad and Vijayawada, which led to the recovery of several incriminating documents and other material evidence,” Joshi said.
Besides the company and its chairman and managing director Sabbineni Surendra, the agency also named managing director Garapati Harihara Rao, directors Sridhar Chandrasekharan Nivarthi, Sharad Kumar, Guarantor K. Ramuli, K. Anjamma, another company Ravi Kailas Builders Pvt Ltd, its directors Ramesh Pasupuletu and Govind Kumar Irani.
The Enforcement Directorate (ED) is also preparing to start its separate probe against the construction firm and its promoters under the provisions of the Prevention of Money Laundering Act (PMLA).
“The ED will soon register a case against the firm and its directors. ED officials are in touch with CBI sleuths”.
● The SBI alleged the accused construction firm, during the five-year period from 2013 and 2018, falsified account books and financial statements to show unrealisable bank guarantee amounts as realisable investments.