CBI registers case against Hyderabad firm, others in fraud case

Posted on May 12, 2017 from Delhi, National ι Report #124726

New Delhi, May 12 (IANS) The CBI has registered a case against a Hyderabad-based construction firm on the charge of cheating a government bank of Rs 205.02 crore by fraudulent misrepresentation of loan documents, an official said on Friday.

The agency registered a case against VNR Infrastructures Ltd. (VIL) on the complaint of IFCI Ltd., an Indian government's development bank to cater to the long-term finance needs of the industrial sector.

Those booked include VIL Managing Director V. Narayana Reddy and seven others, including six companies, and unknown public servants under the Indian Penal Code and Prevention of Corruption Act, Central Bureau of Investigation (CBI) Spokesperson R.K. Gaur said.

"VIL had applied for loans of Rs 190 crore for executing certain projects in 2014-2015 against security of immovable property, whose worth was highly inflated with a mala fide intention. The firm did not repay the loans, thereby causing a loss of Rs 205.02 crore to IFCI Ltd.," he said.

The official said that simultaneous searches were conducted at multiple locations in Hyderabad, Bengaluru and Nellore.