CBI books Hyderabad firm for bank fraud
Following a complaint filed by Punjab National Bank, CBI operatives carried out searches at three locations in Hyderabad.
Hyderabad: The CBI has booked Hyderabad-based telecom equipment manufacturing company VMC Systems for alleged bank fraud to the tune of Rs 1,700 crore.
Following a complaint filed by Punjab National Bank, CBI operatives carried out searches at three locations in Hyderabad and registered a case against the firm's promoters. It borrowed Rs 539 crore from PNB and the rest from other banks including the SBI.
According to sources, searches were carried out by a CBI team from Bengaluru on Wednesday at three locations including the residences of the promoters. The CBI registered an FIR against company promoters Vuppalapati Hima Bindu, Vuppalapati Venkat Rama Rao and Bhagavatula Venkat Ramanna, with regard to criminal conspiracy, cheating and forgery, said officials.
VMC Systems manufactures telecom equipment, networking, and power conversion products. It has first borrowed Rs 1,010 crore in 2009, the CBI stated.
The promoters are alleged to have diverted the funds and claimed that they could not pay back the loan amount due to pending dues with other private and government entities.