TD Spokesman Alleges Fake Bank Guarantees Involving Foreign Bank
Tirupati:Telugu Desam party spokesperson Anam Venkata Ramana Reddy has alleged fake bank guarantee scams involving contractors from Andhra Pradesh and Telangana, and a foreign bank.
Addressing media in Nellore on Wednesday, the TD leader charged that several contractors from the two Telugu states have been submitting bank guarantees issued by Euro Exim Bank, based in Saint Lucia, West Indies.
He underlined that while Euro Exim’s revenues last year had been estimated at around ₹1,900 crore, bank guarantees issued by it in India alone exceed ₹2,400 crore.
Anam asserted that this is in gross violation of the Foreign Exchange Management Act (FEMA) and Foreign Exchange Regulation Act (FERA).
“Shirdi Sai Electricals and Raghava Constructions have submitted bank guarantees of Euro Exim. These companies are partially owned by Ponguleti Srinivasa Reddy, the current Telangana information minister,” the TD spokesperson alleged.
He disclosed that bank guarantees had been submitted for various works of Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) and some highway projects. He charged that APSPDCL chairman K. Santosh Rao and energy secretary K. Vijayanand are responsible for these lapses.
Anam alleged that such bank guarantees had also been submitted to government entities in Maharashtra, Tamil Nadu, Karnataka and Odisha.
He called upon union finance minister Nirmala Sitharaman to intervene and take appropriate action against those involved in the bank guarantees’ scams.
