CBI books Hyd-based Nandi Grain Derivatives in Rs. 61cr bank fraud

Hyderabad: The Central Bureau of Investigation (CBI) has booked a Hyderabad-based company Nandi Grain Derivatives Private Limited in a Rs. 61.86 crore bank fraud case.

The CBI was acting on a complaint filed by V. Sri Hari, the AGM of Bank of Baroda, Zonal Stressed Assets Recovery Branch, Saifabad.

The investigating agency filed an FIR on the allegations that Nandi Grain Derivatives, Hyderabad, represented by its directors V. Suresh Kumar Sastry, Sreedhar Reddy Sajjala, and SPY Reddy, in pursuance of criminal conspiracy with V. Sashi Reddy and SPY Agro Industries Limited had availed loans from Bank of Baroda, Banjara Hills Branch. Later, they had diverted the loan funds for other than the purpose for which the loan was given and for personal gains.

The bank said that they have sanctioned a cash credit facility of Rs 27 crore on November 8, 2012, for the manufacturing of Maize Starch and by-product. The company was also sanctioned a cash facility of Rs 10 crore by Canara Bank under the consortium of Bank of Baroda. The company offered eight immovable properties valued at Rs 7.38 crore as of the date of sanction.

Also, the Corporate Guarantor Spy Agro Industries Limited has deposited 14 cheques of Rs.50 lakhs each aggregating to Rs.7.00 crores towards part repayment of loan liability, however, the said cheques were returned with Funds insufficient.

The bank alleged that the company submitted false stock statements to conceal their irregularities; falsified their books of accounts and willfully defaulted in repayment, and caused wrongful loss to the bank to the tune of Rs. 61.86 crores.

The CBI booked the directors and former bank officials under various sections of the Indian Penal Code and the Prevention of Corruption Act.

Acting on a complaint the CBI booked the directors and former bank officials under section 120 –B r/w, 420, 468 and 471of Indian Penal Code and 13 (2) r/w 13(1) (d) of Prevention of Corruption Act.