Rice mill owner booked in bank loan fraud case

The Central Bureau of Investigation (CBI) officials registered criminal cases against management of Harshvardhan Modern Rice Mills in Guntur for duping the State Bank of India (SBI) to the tune of `3.50 crore on Saturday.

Cases were registered against the Harshavardhan Modern Rice Mills managing director Gurava Reddy Kola and four others Kola Aruna, Kallam Mastanamma, Kallam Lakshml Devi, and J. Brahma Reddy who represents Rama Brahma Modern Rice Mills Pvt. Ltd.

The SBI regional manager A. Tarakeswar Rao lodged the complaint against the accused for duping the bank to the tune of `3.50 crore.

It is alleged in the complaint that Harshavardhan Modern Rice Mills was a private limited company incorporated under Indian Companies Act, 1956. Its managing director Kola Gurava Reddy approached the SBI, Guntur main branch at Kinnavarithota on December 19, 2011 and applied for financial facilities in the form of term loan for meeting part cost of acquisition and establishment of machinery for the mill.

The loan of `3.85 crore was sanctioned on January 3, 2012. The borrowers, personal guarantors and corporate guarantors deposited property documents as collateral security for the sanctioned loan which was later found to be non-enforceable as either most of the mortgaged properties were not identifiable as demarcations were in dispute. It was also alleged that the land mortgaged was more than the land existing in the survey numbers in government land records. The parties to the title deeds created documents with sub divisions of survey numbers though the government did not divide the land into subdivisions in the said survey numbers.

“The machine financed by the bank was removed by the borrower. The borrower did not route the sale proceeds through the designated loan accounts and diverted the amount with an intention to cheat the bank. The accused also floated different firms and obtained finance from the SBI and later evaded payment of bank’s dues and the account became NPA with outstanding of `3.59 crore,” the complainant said.

The CBI officials registered cases under relevant sections and took up the probe. They also collected bank audit reports in connection with the fraud for further probe proceedings.

● IT WAS alleged that the land mortgaged was more than the land existing in the survey numbers in government land records. The parties to the title deeds created documents with sub divisions of survey numbers though the government did not divide the land into subdivisions in the said survey numbers.