CBI books Guntur based Gayatri Cotton mills in Rs 8 Cr bank fraud

By Newsmeter Network  Published on  5 Jan 2022 5:53 PM GMT
CBI books Guntur based Gayatri Cotton mills in Rs 8 Cr bank fraud

Guntur: The sleuths of Central Bureau of Investigation (CBI) has booked the promoters of Guntur based Gayatri Cotton mills in a Rs 8.01 crore bank fraud case.

The CBI was acting based on a complaint filed by regional manager- State Bank of India. The accused promoters Innamuri Subrahmanyam and Innamuri Basavaiah, both brothers availed a credit facility of Rs 8 crores in 2018. However in 2019, the company – Gayatri Cotton Mills that is engaged in cotton ginning and trading, turned non performing asset.

An independent investigation carried out by the bank found that the promoter brothers indulged in misappropriation of funds and huge cash was withdrawn from the cash credit accounts, the latter diverted the money. "The borrowing firms and its partners and guarantors in collusion and connivance with other accused has caused a wrongful loss of Rs 8.01 crore to the bank' the CBI said.

The CBI booked the promoter brothers under section 120-B, 420, 467, 468 and 471 of the Indian Penal Code and section 13(2) r/w 13(1) (d) of Prevention of Corruption Act.

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