CBI books Hyderabad based Amazon Enterprises in Rs 19.16 Cr bank fraud

Hyderabad: Amazon Enterprises Private Limited represented by directors Mannepalli Kamalnath and Kondapalli Randha Krishna, have been booked by the Central Bureau of Investigation (CBI) in an Rs 19.16 Crore bank fraud case.

The CBI was acting based on a complaint filed by D. Aparna Reddy – AGM of Union Bank of India. Based in Ameepert of Hyderabad, Amazon Enterprises is engaged in trading.

The crime dates back to 2016, when the directors Mannepalli Kamalnath, Kondapalliradha Krishna availed a loan of Rs 3.53 Cr and cash limit of Rs 7.59 Cr from the UBI. In return the directors submitted a land located in Quthbullapur as a security.

The following year, the directors defaulted in payments resulting in the account turning non-performing asset (NPA). The bank also found that the land submitted as security is in litigation and the promoters had inflated the value of the immovable property. This also reflects the work of the evaluators who initially approved of the property.

An independent probe conducted by the bank officials revealed that the company instead diverted the funds. "The directors of the company in criminal conspiracy with the bank panel valuer Mr Katakam Narsimhan, Bank panel advocate Mr Srinivas Prasad and then branch head K Govind committed the fraud. The bank suffered a wrongful loss of Rs 19.16 crore.

Acting on a complaint the CBI booked the directors and former bank officials under section 120 –B r/w, 420, 409 of Indian Penal Code and 13 (2) r/w 13(1) (d) of Prevention of Corruption Act.