CBI registers Hyderabad-based Totem Infrastructure for defrauding banks of Rs 1,400 crore
The recent bank fraud cases and controversies against Punjab National Bank has put other firms in limelight. The CBI yet again has registered a bank fraud case against a Hyderabad-based Totem Infrastructure Ltd for defrauding a consortium of eight banks led by by Union Bank of India (UBI) to the tune of over Rs 1,394 crore, officials said today.
Totem Infrastructure Ltd has worked as a sub-contractor for several major infrastructure companies and its promoters Tottempudi Salalith and Tottempudi Kavita were named in a CBI FIR registered on the basis of a complaint from the Union Bank of IndiaBSE -8.18 %, one of the eight banks. The comapny is engaged in nfrastructure development projects like road projects, water works and building construction is alleged to have diverted funds and inflated expenditure, the official said.
The CBI has registered a case under the Indian Penal Code Sections relating to cheating, criminal conspiracy and criminal breach of trust and relevant provisions of the Prevention of Corruption Act and agency also conducted searches at several locations in Hyderabad.
Also Read: CBI questions Kanishk Gold directors in Rs 824 crore fraud case
The CBI has registered an FIR against the accused Totem Infrastructure, Promoter Tottempudi Salalith and his wife and director of the firm Tottempudi Kavita.
Totem Infrastructure's name is listed as the biggest tax defaulters released by the Income Tax Department in 2015 with an outstanding tax of over Rs 400 crore.
The I-T department announced a reward of up to Rs 15 lakh to informants for tracing the company and other defaulters as they were "untraceable".
The bank alleged in the complaint that it suffered a loss of Rs 313.84 crore as the loans given to the company had become NPA in June, 2012.
“Loan was taken from a consortium of eight banks including UBI which was the lead bank. The total outstanding dues against the firm is Rs 1,394.43 crore. This account became Non-performing asset (NPA)on June 30, 2012 after loan and interest repayment default,” said a CBI official.
On Thursday, the CBI registered a case of alleged fraud of Rs 824 crore and questioned the directors of Kanishk Gold Pvt. Ltd. (KGPL). The case is regarding Kanishk Gold who is involved in taking loans from a SBI-led consortium of 14 banks.