FIR against officials of Leo Meridian Infrastructure Projects and Hotels Limited for cheating
Bank of Baroda was allegedly cheated to the tune of Rs 149.91 crore
By : DC Correspondent
Update: 2015-03-24 08:11 GMT
Hyderabad: The Central Bureau of Investigation has issued an FIR against the CMD and other directors of city-based Leo Meridian Infrastructure Projects and Hotels Limited for allegedly cheating Bank of Baroda to the tune of Rs 149.91 crore. The CMD of LMIPHL, G.S. Chakravarthi Raju, and others have been booked based on a complaint filed by Bank of Baroda.
The company is engaged in real estate and establishment of hotels and water parks. It also owns the Leo Meridian Resorts in Shamirpet. The bank has alleged that the company used forged documents and submitted a project report for 18 floors for the hotel though HMDA had given permission for only 13 floors.
LMIPHL also allegedly mortgaged an upcoming hotel, comprising 265 rooms, and another hotel of 903 rooms situated in Bommarasapet in Shamirpet. The complainant alleged that the properties were not identified and failed to bring the stipulated margin from the company. Another allegation is that the company mortgaged land that had already been plotted and sold.
The company has also taken loans from Union Bank of India, Andhra Bank, SBI, Corporation Bank, IOB, Allahabad Bank, State Bank of Mysore and Bank of India to the tune of Rs 450 crore. It is also alleged that the projects for which company took loans were not completed. Due to nonpayment of interests, several of the accounts were classified as NPAs.
The alleged fraud took place from 2007 to 2013. The case has been entrusted to the Bangalore Banking Securities and Fraud Cell.