HYDERABAD: The Central Bureau of Investigation (CBI) has booked a city-based firm and its directors for Rs 8 crore loan fraud of Union Bank of India. The firm, Prithiviram Infra, is a partnership engaged in infrastructure projects in industrial, residential and commercial concerns.
The firm, represented by its partners Undavalli Raja Gopal and Boppudi Seshagiri Rao, had availed a secured overdraft facility of Rs 4 crore and letter of credit (LC) of Rs 2 crore, with a total limit of Rs 6 crore in October 2016 for business purposes from Union Bank of India’s Defence Colony Branch in Hyderabad.
The company had offered primary securities of hypothecation of stocks procured against the LC and charge on all current assets. It had also offered a residential building in Kanchanbagh and non-agricultural open land in Gaganpahad, Rajendranagar, as collateral security.
After availing the loan, the company defaulted on repayment of loan as per agreements and the account became a non-performing asset (NPA) in November 2018. The ownership of the property offered as collateral is claimed by a third party.
An audit revealed that the firm had diverted funds among others. The bank, in February 2019, communicated to Navega Enviro Engineers & Consultants and Loorven Green Energy Projects Private Limited that the borrower had transferred huge amounts to them but had failed to submit the relevant bills and invoices. The two companies, however, did not respond to the bank.
The CBI said the accused had committed cheating, diverted and misappropriated the borrowed funds and caused wrongful loss to the bank to the extent of Rs 8.15 crore.
