In largest scam by any infra player, CBI raids this firm; finds incriminating docs
New Delhi: In one of the largest scams by any infra firm in the country, Hyderabad-based IVRCL has been raided by central probe agency CBI in a connection with a Rs 4,800 crore scam. The properties and residence of firm’s MD Sudhir Reddy and Joint MD Balarami Reddy have also been raided.
CBI had booked the company and its directors on the basis of a complaint by SBI from whci had alleged that the company defrauded it and other banks to the tune of Rs 4,837 crore.
The consortium of banks that have been allegedly defrauded include Canara Bank, Andhra bank, EXxIM Bank, IDBI Bank, Corporation Bank, Union Bank of India and Punjab & Sind Bank, apart from SBI.
It is also alleged that IVRCL availed various credit facilities from the banks but did not repay.
"It was also alleged that as per the forensic audit report, the company made payments to related parties through letters of credit (LCs), without recording any purchase transactions in the books and routed the funds to the account of the company and thereby misappropriated the bank funds," RC Joshi, CBI spokesperson, was quoted as saying in a news report by PTI.
Many incriminating proof and documents have been recovered in the raids, said Joshi.