Loan fraud: ED searches Transstroy India
HYDERABAD: The Enforcement Directorate (ED) said on Monday that it recently conducted search operations on bank lockers belonging to Cherukuri Sridhar and his family members in connection with a bank fraud case against Transstroy India Limited. Sridhar is the former CMD of Transstroy India Limited.
Searches were carried out in connection with a money laundering case involving a loan fraud of Rs 9,394 crore.
In its operation, the investigation agency seized 9.34 kg of jewellery valued at Rs6.98 crore and 2.27 kg of gold coins and bars valued at Rs1.37 crore. The total value of seized bullion and jewellery is estimated to be Rs 8.35 crore.
ED officials initiated a money laundering investigation on the basis of an FIR registered by the CBI, ACB Hyderabad alleging bank fraud, cheating, and criminal breach of trust by Transstroy India Ltd., its directors, and others.
ED officials said that Transtroy India Private Limited was enjoying credit facilities under the multi-banking system by availing various credit facilities from more than 10 banks.
ED investigation revealed that the directors of the company conspired with others, mis-utilised loan funds, and diverted the same by deploying various modus operandi such as accommodated Letters of Credit (LC) transactions, diversion of funds to accounts maintained outside the consortium, multilayered transactions with the help of entry providers.
ED had earlier conducted search operations at nine locations in Hyderabad and Guntur including the premises of Sambasiva Rao and ex-CMD of Transstroy India Limited in connection with the cases.