CBI books Guntur-based Ethic Agros in Rs. 72 cr bank fraud

By Newsmeter Network  Published on  21 April 2021 11:30 AM GMT
CBI books Guntur-based Ethic Agros in Rs. 72 cr bank fraud

Hyderabad: The Central Bureau of Investigation (CBI) on 21 April booked Guntur-based Ethnic Agros Limited for defrauding the State Bank of India to the tune of Rs. 72.17 crore.

The investigating agency has registered a criminal case against Tadisetty Murali Mohan, the managing director and promoter, director Tadisetty Venkata Rao, Mindela Venkata Ramana, and others.

With its head office in Guntur, Ethic Agros Limited, formerly known as Ethic Spinners, is engaged in manufacturing cotton yarn and lint. The company is a flagship unit of Ethic Tobacco (India) Limited (ETIL) that is engaged in tobacco processing.

Ethnic Agros had availed a loan of Rs. 67 crore from the State Bank of India by mortgaging its assets. However, in 2019, the account turned into a non-performing asset after the company submitted inflated stock statements and transferred funds to the personal accounts of directors.

The CBI was acting on a complaint filed by the deputy general manager of SBI's Kacheguda branch of Hyderabad. The total loss caused to the bank stands at Rs. 72.17 crores.

A case under various sections of the Prevention of Corruption Act 1988 (as amended in 2018) and the Indian Penal Code has been registered against the company.

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