CBI books Hyd firm Aditya Constructions in Rs. 11.39 crore fraud

The company that has many ventures in Hyderabad was sanctioned a secured overdraft facility (SOD) against property worth Rs. 2.50 crore. It submitted many properties, including open plots in Kapra and Kukatpally, as collateral security to the Union Banks of India. Subsequently, the SOD was increased based on the security. However, the company's account turned into a non-performing asset as the security (properties) submitted did not have a clear title.

No clear title on Kapra land

During the investigation, it was found that Aditya Constructions had no clear title for open plots measuring 2,473 square yards located at Maitri Enclave in Kapra under Keesara mandal which belongs to Mr. Ramesh Reddy.

The owner had submitted fake certificates as bank guarantee to Jharkhand Renewal Energy Development Agency (JRED), Ranchi, for Rs. 5.35 crore and Rs. 51.96 lakh for enhancement of secured overdraft facility.

"Mr. Ramesh Reddy produced a fabricated 'no dues' certificate from the Bank of India for the enhancement of SOD. He also submitted different PAN number on various occasions to different branches of SBI," the CBI said.

What is the fraud?

Aditya Constructions cheated the bank by mortgaging collateral security without having a clear title. The firm's account has been declared fraud. The CBI booked the firm under various sections of the IPC and Prevention of Corruption Act.