CBI books Guntur firm Ethic Spices in Rs. 41.97 cr scam
The sleuths of the Central Bureau of Investigation (CBI), Chennai wing, have booked Guntur-based Ethic Spices Private Limited and its promoters Tadisetty Venkata Rao and Murali Mohan in a Rs. 41.97 crore bank fraud case.
By Newsmeter Network Published on 7 Jan 2022 10:49 AM GMT
Andhra Pradesh: The sleuths of the Central Bureau of Investigation (CBI), Chennai wing, have booked Guntur-based Ethic Spices Private Limited and its promoters Tadisetty Venkata Rao and Murali Mohan in a Rs. 41.97 crore bank fraud case.
The Ethic group is engaged in multiple businesses, including tobacco, metals, aqua products, cine crafts, and Agros. Though based in Guntur, the firm's promoters Tadisetty Venkata Rao and Tadisetty Murali Mohan are residents of Hyderabad.
The investigating agency was acting on a complaint filed by the deputy general manager of the State Bank of India. According to the complainant, the promoters availed a credit facility of Rs. 40 crore from the bank in 2013 for trading in chillies and tobacco products. In 2019, due to non-payment of dues, the account turned into a non-performing asset.
An independent inquiry conducted by the bankers revealed that the promoters had submitted inflated stock statements to avail the cash credit. The duo intentionally diverted the money to their personal accounts and to other related firms causing a loss of Rs. 41.97 crore to the bank, the inquiry found.
The CBI booked them under sections 120B, 420, 468, 471, and 477A of the Indian Penal Code and under sections 13 (2) read with 13 (1) (d) of the Prevention of Corruption Act.
