Tirupati: The Central Bureau of Investigation on Sunday arrested suspended Telugu Desam Andhra Pradesh Member of Legislative Council Vakati Narayana Reddy in Bengaluru for borrowing Rs 200 crore from IFCI Bank allegedly with fabricated documents and not repaying it.
The CBI called Mr Reddy for an inquiry and arrested him after questioning. As the MLC had not repaid the loan, it had turned into a non-performing asset. The bank had served several notices to his construction company, VNR Constructions, but they were returned as he had shifted from the location.
The bank then wrote to the CBI economic offences wing.
The CBI raided the MLC’s house and the offices of VNR Construc-tions on March 12, 2017.
The CBI found that the assets were exaggerated and the loan was taken by showing that VNR Constructions was making profits while in reality it was running in losses and had run up several debts. Mr Reddy had also taken loans from many other banks. Mr Narayana Reddy was elected MLC from Telugu Desam, but the party suspended him after the CBI raids.
