India News | Loan Fraud Case: CBI Files Charge Sheet Against YSRC MP RR Raju, 15 Others

New Delhi, Dec 31 (PTI) The CBI has filed a charge sheet against YSR Congress MP Raghu Ramkrishna Raju, and 15 other individuals and companies in connection with an alleged loan fraud case of Rs 947 crore with the Power Finance Corporation Limited and other lenders, officials said.

In its charge sheet filed before a special CBI court here, the agency alleged that Raju's company Ind Barath group had allegedly availed around Rs 947.71 crore from a consortium of lenders for setting up a thermal power plant at Tuticorin in Tamil Nadu.

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The consortium was led by the Power Finance Corporation Limited (PFC) and the other lenders were Rural Electrification Corporation Limited (REC) and India Infrastructure Finance Company Limited (IIFCL).

"It was further alleged that the borrower company neither completed the project nor complied with the terms and conditions of loan agreements. The accused, including borrower company, allegedly transferred/diverted the disbursed project funds to create fixed deposits with Bank of India and UCO Bank and to pay advances to contractors," CBI Spokesperson RC Joshi said.

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He said the CBI charge sheet alleged that the accused availed loans against these fixed deposits and advances paid to contractors for the group companies and later due to non-repayment of loan amount, the said FDs were adjusted against the loan accounts, leading to loss to the lenders.

"It was also alleged that the borrower company in collusion with other accused illegally used and siphoned off the funds disbursed for setting up thermal power project. Thus, the accused cheated the complainants, lenders and caused loss of Rs. 947.71 crore (approx.) to them. After investigation, a chargesheet was filed, " he said. http://ptinews.com/images/pti.jpg “We bring the World to you" Disclaimer : This e-mail message may contain proprietary, confidential or legally privileged information for the sole use of the person or entity to whom this message was originally addressed. Please delete this e-mail, if it is not meant for you.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)