Speed up Raghurama fraud case, CBI urged
- In a letter to the Central agency, MP Vijaysai Reddy also wants the court to bar directors and other parties of the accused companies from travelling abroad
- Recalls that based on the forensic audit report, which hinted diversion of funds Punjab National Bank declared IBTPL's account 'fraud' on Nov 14, 2019
New Delhi: YSRCP general secretary and Parliamentary Party Leader V Vijayasai Reddy wrote to the Central Bureau of Investigation (CBI) here on Thursday urging it to expedite the probe into the case of alleged bank fraud involving MP K Raghurama Krishna Raju and his company.
He is said to have raised the issue during his courtesy call with Prime Minister Narendra Modi too.
In his letter, Vijayasai Reddy requested that the CBI speed up the probe to lift the corporate veil to unmask the real fraudsters. He also wanted the court to impose a travel ban on the directors and other related parties of the accused companies, including Raghurama Krishna Raju.
He also wanted the CBI to take immediate steps towards the recovery of the fraud amount along with interest from the accused companies and their directors by personally holding them liable.
"I request you to take prompt steps to ensure that the real culprits behind the massive fraud committed by Ind-Bharath Thermal Power Ltd (floated by Raghurama Krishna Raju) face the law and repay the loan amount along with interest."
He said the IBTPL was sanctioned various credit facilities by the consortium of 10 banks, led by Punjab National Bank to the extent of Rs 1,004.6 crore, supposedly for setting up a 300 MW coal-based power plant in Honkan village in Karnataka and later to Tuticorin, Tamil Nadu.
In due course, there were several instances of Power Finance Corporation (PFC) and Rural Electrification Corporation(REC) under the ministry of power visiting the site of the project, and they had expressed concerns regarding its slow progress of the work and had recorded their concerns.
In March 2018, Punjab National Bank declared the account of M/s IBTPL as a non-performing asset with an effective date as June 30, 2016 with outstanding liability at Rs 1,021.13 crore. Based on the forensic audit report dated August 31, 2019, which indicated a diversion of funds between April 1, 2014 and August 31, 2018, Punjab National Bank (lead bank) declared IBTPL's account 'fraud' on November 14, 2019. All other nine banks in the consortium of lenders also declared the account as fraud as a complaint was filed with the CBI, as the money was swindled by IBPTL.
"There is an added responsibility on the CBI to take this matter more seriously and pursue it with greater vigour. The delay in disposing of the case has led to its promoters living a lavish lifestyle splurging the ill-gotten money on cars and houses," the YSRCP senior leader added.