Hyderabad: The sleuths of Central Bureau of Investigation have booked a Hyderabad based company Coastal Projects Limited for defrauding a consortium of banks to the tune of Rs 4736.57 Crore.The company's records indicate that it is currently under liquidation process.
A CBI's Bengaluru branch has registered a case under criminal conspiracy and cheating against Sabbineni Surendra, chairman & managing director and guarantor, Garapati Harihara Rao, managing director & guarantor, Sridhar Chandrasekharan Nivarthi-director (Finance), Sharad Kumar, director, K. Ramulu, guarantor & mortgagor, K. Anjamma, guarantor & mortgagor. Coastal Projects are engaged in civil engineering and has bagged several multi crore projects.
The investigating agencies also booked another Hyderabad based company Ravi Kailas Builders represented by its Managing Director/Director Ramesh Pasupuleti and Govind Kumar.
According to the CBI, the company directors who are accused, connived with unknown public servants and defrauded the consortium of Banks.
The company's account turned non-performing asset in 2017 while the fraud was detected in 2020. Investigation found that the 'borrower company' based in Hyderabad between 2013 and 2018 indulged in fabricating accounts, manipulated financials to show unrealizable invoked BG amounts as realizable investments. "The company falsified details of promoters' contribution, converted receivables from related parties to investments to siphon off the banks funds, cheating the SBI and other consortium member banks" CBI said.
The Bengaluru team of CBI conducted searches at the residential and official premises of the accused at Hyderabad and Vijayawada which led to recovery of several incriminating documents and other material evidences.
While the longest serving director currently on board is Sabbineni Babu Surendra who was appointed on 01 May, 1995 and has been on board for more than 25 years. The most recently appointed director is Tadimalla Veera Bhadra Durga Srinivasa Rao Venkata, who was appointed on 07 July, 2017.
Sabbineni Babu Surendra has the largest number of other directorships with a seat at a total of 9 companies. In total, the company is connected to 16 other companies through its directors.