CBI files case against Nellore rice mill for Rs 17.76 crore bank fraud

Hyderabad: CBI officials registered cases against the management of Sri Lakshmi Narasimha Swamy raw and boiled rice mill for duping Syndicate Bank (now Canara Bank) to the tune Rs 17.76 crore.

The cases were registered against Badwel Hemalatha, Badwel Narayanamma, Badwel Srinivasulu Reddy, and Ojili N Raju, panel valuer of the bank and others. All are natives of Nellore.

The accused managed to get credit facilities by submitting inflated valuation reports of collateral properties for constructing a rice mill and buying equipment. However, once the loan was cleared they diverted the money, failed to pay installments and sold the stock and machinery that were hypothecated without informing the bank.

K.H. Patnaik, chief general manager of Canara Bank, lodged a complaint with CBI officials and demanded investigation into the Rs 17.76 crore fraud.
The rice mill is located in Nellore district’s Kovur village.