Loan fraud: ED searches Transstroy India
In recently conducted search operations by the Enforcement Directorate (ED) on bank lockers belonging to Cherukuri Sridhar and his family members, total gold valued at Rs.8.35 crore was seized.
The searches were in connection with a bank fraud case against Transstroy India Limited. Sridhar is the former CMD of Transstroy India Limited.
The operations resulted in the recovery and seizure of 9.34 kg jewellery worth Rs.6.98 crore, and 2.27 kg of gold coins and bars worth Rs.1.37 crore.
The ED had initiated a money laundering investigation based on an FIR registered by the CBI, alleging bank fraud, cheating, and criminal breach of trust by Transstroy India Ltd, its directors, and others.
Transstroy India had been enjoying credit facilities under a multi-banking system, availing various credit facilities from more than 10 banks.
The ED’s investigation revealed that the directors of Transstroy India conspired with others, misused loan funds, and diverted the same through various methods, such as accommodated Letters of Credit (LC) transactions, diverting funds to accounts maintained outside the consortium, and engaging in multilayered transactions with the help of entry providers.
Earlier, the ED had conducted search operations at nine locations in Hyderabad and Guntur, including the premises of Rayapati Sambasiva Rao, ex-MP, and Cherukuri Sridhar, ex-CMD of Transstroy India Limited.
[With Inputs from IANS]
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