CBI conducts searches at 12 locations of Sujana Group

Hyderabad: The CBI’s bank security and fraud cell personnel carried out searches at 12 locations including the Hyderabad residence of former Union minister and Telugu Desam MP Y. Sujana Chowdary. The searches are in connection with an ongoing investigation into the Sujana group defaulting Andhra Bank to the tune of Rs 71 crore.

This is a part of the case where Best & Crompton Engineering Private Limited defrauded a consortium of banks of Rs 364 crore during 2010-2013.

A source told Deccan Chronicle that Mr Chowdary was examined by the bank security and fraud cell of the CBI, Bengaluru, in April, in connection with Best & Crompton Engineering Pvt Limited cheating banks of `364 crore. “On the basis of his statement, searches were conducted in Hyderabad and nearby at 12 locations.

This particular search pertains to the Sujana Group defaulting Andhra Bank of Rs 71 crore. Our personnel examined a few documents which they found incriminating,” the source said. Last November, the office and residences of Mr Chowdary were raided by the ED and I-T department officials.

Sources alleged that the Rs 364 crore the Sujana Group borrowed from banks was transferred through bogus invoices and shell companies to Mahal Hotels which was found to be a fake company. Both Best & Crompton Engineering and Mahal Hotels are part of the Sujana Group whose promoter is Mr Chowdhary.

In 2017, the CBI filed a case against Best & Crompton Engineering. Last November, the office and residences of Mr Chowdary were raided by the Enforcement Directorate and income-tax department officials. Properties worth Rs 364 crore were attached by the ED.

Investigations by the CBI and ED revealed that former employees of the Sujana Group were appointed directors of the shell firms in question.

While the loan fraud revolves around Best & Crompton Engineering in Chennai, city-based firms Sri Ganga Steel Enterprises Pvt Ltd and Bhagyanagar Investments and Trading Pvt Ltd that are located at the same address at Nagarjuna Hills in Panjagutta are being probed. Tejaswini Engineering Pvt Ltd and Future Tech Industries are also being investigated.

The CBI has so far issued three FIRs — in February 2016, February 2017 and July 2018 against Best and Crompton Engineering and its directors, including former CBI director and TRS leader K. Vijayarama Rao’s son Kakulamarri Srinvas Kalyan Rao. A total of Rs 304 crore — Rs 124 crore of Central Bank, `60 crore of Andhra Bank and Rs 120 crore of Corporation Bank — was defrauded by Best & Crompton Engineering. Apart from Mr Kalyan Rao, the other directors are Mr Meka Ramakrishna Varma, Mr Ravi Narayanaswamy Balachandran, Mr Seshagiri Rao, Mr Bellary Murali and the chief financial officer is Mr Yogeswar R. Bajaj.