The agency initiated investigation following a case registered by the ACB against Korrapati and others. As per the FIR, Korrapati fraudulently availed credit facilities amounting to Rs 10 crore from Syndicate Bank, Chandanagar, by submitting forged sub-contract agreements and non-existent work orders. With interest, the amount grew to Rs 12.3 crore
Hyderabad: The Enforcement Directorate has attached four properties valued at Rs 2.91 crore in connection with an alleged bank fraud case by contractor Subbaiah Korrapati. The properties include agricultural land, residential plots and a commercial property in the name of Korrapati’s associates.
The agency initiated investigation following a case registered by the ACB against Korrapati and others. As per the FIR, Korrapati fraudulently availed credit facilities amounting to Rs 10 crore from Syndicate Bank, Chandanagar, by submitting forged sub-contract agreements and non-existent work orders. With interest, the amount grew to Rs 12.3 crore.
ED inquiries found that Korrapati had diverted the money, layered and siphoned off the proceeds by transferring it to other co-accused associates and entities by way of bogus sub-contracts, fake raw material bills, round-tripping of funds and cash withdrawals.
Korrapati allegedly misused bank guarantees under the NSIC raw material assistance scheme by submitting forged invoices and routing the funds back to his own bank accounts. The money was then used for repayment of loans, for securing projects and for his personal and business expenditures.
