CBI books three Vijayawada-based firms in Rs. 48 cr bank fraud case

Hyderabad: The Central Bureau of Investigation has booked three Vijaywada-based companies - Sri Balaji Raw Par Boiled Rice Mill, Pallavi Enterprises, and Girija Modern Rice Mill - in a Rs. 48 crore bank fraud case. The National Bulk Handling Corporation, Guntur unit, has also been charged of criminal conspiracy.

The CBI was acting based on a complaint filed by the State Bank of India officials. According to the complainant, Balaji Raw Par Boiled Rice Mill was sanctioned a loan of Rs. 15 crore, Pallavi Enterprises a loan of Rs. 8 crore, and Girija Modern Rice Mill, Rs. 11.39 crore. Balaji and Pallavi had leased a godown of Girija Mill to stock material. All three companies are closely linked and comprise only family members as promoters.

The crime dates back to 2018 when the mill halted activities following a strike called by the Krishna district rice millers association. Following this, the accounts of all three companies turned into non-performing assets and were later was put up for e-auction. However, the companies conspired with one another and defrauded the bank by misappropriating pledged stocks and providing false stock statements.

For instance, when the officials of National Bulk Handling Corporation Guntur unit visited the godown, they found a shortage of 1,14,000 bags against the 2,40,000 bags (The bank had a collateral agreement with NBHC for taking possession of the stock). However, the NBHC failed in discharging its duties, resulting in the CBI booking the corporation, too. The CBI said that the NBHC had colluded with the borrowers and assisted in the fraud due to which the bank had suffered a loss of Rs. 48 crore.

The Central agency has booked six persons - Karumuri Venkata Pallavi, Pothuri Venkata Rama Vanaja, Attuluri Venkata Lakshmi Girija, Vootukuri Vaishali, Vootukuri Venkata Ajay Krishna, and Tatikonda Savitri.