The CBI has filed a charge sheet against YSR Congress MP Raghu Ramkrishna Raju and 15 other individuals and companies in connection with an alleged loan fraud case of Rs 947 crore with Power Finance Corporation Limited (PFC) and other lenders, officials said Friday.
In its charge sheet filed before a special CBI court here, the agency alleged that Mr Raju's company Ind Barath group had allegedly availed Rs. 947.71 crore (approx.) from a consortium of lenders -- PFC, Rural Electrification Corporation Limited (REC) and India Infrastructure Finance Company Limited (IIFCL) -- for setting up a thermal power plant at Tuticorin, Tamil Nadu.
The CBI has listed as accused, borrower company Ind-Barath Power Madras Ltd, its the then CMD and Lok Sabha member Raju, director Madhusudhana Reddy, officials said.
"It was further alleged that the borrower company neither completed the project nor complied with the terms and conditions of loan agreements. The accused including borrower company allegedly transferred/diverted the disbursed project funds to create fixed deposits with Bank of India & UCO Bank and to pay advances to contractors," CBI spokesperson RC Joshi said.
He said the CBI charge sheet said that the accused allegedly availed loans against these fixed deposits and advances paid to contractor for the group companies and later due to non-repayment of loan amount, the said FDs were adjusted against the loan accounts, leading to loss to the lenders.
"It was also alleged that the borrower company in collusion with other accused illegally used and siphoned off the funds disbursed for setting up thermal power project. Thus, the accused cheated the complainants, lenders and caused loss of Rs. 947.71 crore (approx.) to them. After investigation, a charge sheet was filed, " he said.
Besides these accused, eight sister companies -- Ind-Barath Power Infra Ltd, Arkay Energy (Rameshwarm) Ltd, Sriba Seabase Pvt. Ltd, Ind-Barath Power Gencom Ltd, Ind-Barath Energy Utkal Ltd, Ind-Barath Power Commodities Ltd, Ind-Barath Energies Maharashtra Ltd. and Ind-Barath Thermal Power Ltd -- have also been listed as accused.
The agency further named contractor Sokeo Power Pvt. Ltd and its managing director Y Nagarjuna Rao and two chartered accountants M Sreenivasulu Reddy of M Sreenivasulu Reddy and Associates, and Pravin Kumar Jabad, partner, T R Chadha and Co. LLP besides C Venu, an official of Ind-Barath Groups as accused, the officials said.