Hyderabad: CBI found that scam-hit Transstroy has diverted huge money to Singapore and other countries and donated gold and silver jewellery to the temples from the loan amount. Rayapati's Transstroy donated in 2012 the costliest gift in the history of the centuries-old temple.
A diamond-studded golden saree worth around Rs 5 crore was given to Goddess Padmavathi Devi of Tiruchanoor near Tirupati.An amount of Rs 15.34 crore was transferred by scam-tainted Transstroy company of TDP MP Rayapati Sambsiva Rao to Transstroy Singapore PTE Limited a subsidiary of the company during 2013-14 without permission of lenders for diversion and siphoning off. It is alleged that Rs 5.28 crore was paid during financial years 2012-13 and Rs 2013-14 towards the purchase of gold and silver articles which is not the purpose for which the money was lent by the banks,Rayapati donated
The company has been diverted money and directors inflated inventory statistics. The books are also fudged. Initially, it was claimed it transactions of Rs 2341 crore from Kumar and Co, but the ledger found that is false.
Jayalakshmi power corporation has been acquired with Rs 36 crore without authorisation of banks,.
CBI alleged,"The company and its directors indulged in the diversion of funds routing the same through other than a consortium of banks to the tune of Rs 3822 crores and written off Rs 794 chores adjusting the same towards reserves and surplus. The stock statements are manipulated and shows the difference of around Rs 2298 crore, "
CBI booked a case of conspiracy, cheating based on the complaint filed by Union Bank of India. The complaint was initially filed with CBI Banking Securities and Fraud cell alleging that directors diverted Rs 264 crore plus interest amount of money. However, the probe into the case found that the magnitude is much bigger and runs into thousands of crores of rupees.
In the complaint alleged that Transstroy was enjoying credit limits with various banks under multiple banking arrangements. The original cash credit limit of Rs 50 crore was enhanced to Rs 81 crore and letter of guarantee limited from Rs 100 to Rs 234 crore and letter of credit limits from Rs 35 crore to Rs 50 crore for Transstroy. During 2013 Consortium was formed with Canara Bank as led bank and in it 2013 August the account has been classified as NPA. In 2015 the account was downgraded as substandard category due to the persistent irregularities by the company, frequent devolvement of letter of credits, non-payment of interest on working capital limits and non-adjustment of devolved LCs and none routing of operations through consortium banks.
Canara Bank initiated a special audit of the company. The audio was done by E&Y in 2017 December.
The audit found that the company he has written off Rs 794 chores and adjusted towards reserves and surpluses wherein the sundry debtor has written off by the company were hypothecated to the consortium banks, Receipts of Rs 2261 crore are not routed through the consortium. The account was declared as a fraud in 2018.
Apart from Transstroy India Limited the company MD Cherukuri Sridhar, promoter Chairman Rayapati Sambasiva Rao, Independent non-executive additional director Suryadevar Srinivasa Babji and unknown public servants of the banks are named s accused.