Hyd businessman creates ghost company, defrauds Canara Bank of Rs 5 Cr

The sleuths of the Central Bureau of Investigation (CBI) have booked a businessman from Hyderabad for cheating Canara bank of Rs. 5 crores by showing a ghost address as loan security.

By Coreena Suares  Published on  3 Jan 2021 9:53 AM GMT
Hyd businessman creates ghost company, defrauds Canara Bank of Rs 5 Cr

Hyderabad: The sleuths of the Central Bureau of Investigation (CBI) have booked a businessman from Hyderabad for cheating Canara bank of Rs. 5 crores by showing a ghost address as loan security.

The investigating agency was acting on a complaint filed by the Canara bank manager in 2020. The CBI booked Sarika Venkateshwara Rao, the director of Nice Marine Exports based in Kakinada.

Nice Marine Exports is engaged in trading and export of raw shrimps after processing. The accused, Venkateshwara Rao, a resident of Hyderabad, had availed a loan of Rs. 5 crores for the trading of shrimps. As collateral security for the loan, he had offered 25 semi-finished flats in Mathrubhomi Pearl in Hyderabad that was in the name of M. Srinivas who was the mortgagor.

The fraud was detected when the Canara bank branch manager, P. B Sitaramayya, did not get the confirmation proof of M. Srinivas to offer the flats as a security for the loan. It was because the properties were already sold in bits by Sarika Venkateshwara Rao.

The stock and book debts were hypothecated and were shown as primary security. As there is no activity, the primary security was not available and the Bank was not in a position to take possession of the collateral security which resulted in the Bank to suffer the loss of Rs 5 crore.

It is also alleged that the property offered as collateral security is not situated in Visakhapatnam and Nice Marine Exports Private Limited also does not exist in Visakhapatnam. The loans were sanctioned without observing proper diligence.

The CBI has booked an FIR under section 420, 409 of IPC and section 13(1)(d) of Prevention of Corruption Act, 1988

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