Transstroy scam: ED seizes Rs 8.35 Cr assets of former TDP MP's firm
The firm was enjoying credit facilities under the multi-banking system by availing various credit facilities from more than 10 banks.
By Coreena Suares Published on 21 Aug 2023 2:32 PM GMT
Hyderabad: The Enforcement Directorateās searches into the money laundering case booked against former TDP MP Rayapati Sambasiva Raoās company Transstroy India Limited resulted in the seizure of Rs 8.35 crore worth of assets.
The sleuths of the Directorate of Enforcement (ED) conducted search operations on bank lockers belonging to former CMD of Transstroy India Limited, Cherukuri Sridhar and his family, on August 18, in connection with a bank fraud case against Transstroy India Limited.
The searches led to the recovery and seizure of 9.34 kg of jewellery valued at Rs 6.98 crore and 2.27 kg of gold coins and bars valued at Rs 1.37 crore. The total value of seized bullion and jewellery is Rs 8.35 crore.
The ED initiated a money laundering investigation on the basis of an FIR registered by the CBI, ACB, Hyderabad, alleging bank fraud, cheating and criminal breach of trust by Transstroy India Ltd., its directors and others. The company was enjoying credit facilities under the multi-banking system by availing various credit facilities from more than 10 banks.
The ED investigation revealed that the directors of the company conspired with others, mis-utilised loan funds and diverted the same by deploying various modus operandi such as accommodated Letters of Credit (LC) transactions, diversion of funds to accounts maintained outside the consortium, multilayered transactions with the help of entry providers etc.
ED had earlier conducted search operations on August 1, 2023, at nine locations in Hyderabad and Guntur including the premises of Rayapati Sambasiva Rao, former MP and Cherukuri Sridhar, former CMD of Transstroy India Limited.
Further investigation is in progress.
