Loan fraud case: More trouble for Transstroy

HYDERABAD: Former MP Rayapati Sambasiva Rao-owned Transstroy India Ltd could land itself in further trouble with the Enforcement Directorate (ED) deciding to issue an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act, 2002.
Highly-placed sources said ECIR would be issued based on a CBI FIR against Transstroy in a loan fraud case.
ED has already registered a Foreign Exchange Management Act (FEMA) case against Transstroy for irregularities in foreign exchange transactions. ED is probing allegations that the company has transferred funds to Singapore and Russia violating the FEMA rules. ED is also probing into the affairs of a joint venture company, Polavaram Project Transstory and JSC EC UES. The latter is a Russian company.
CBI, in its FIR, named Transstroy, promoter-chairman Sambasiva Rao, MD Cherukuri Sridhar and another director Suryadevara Srinivasa Babji.
CBI found that the accused had inflated stocks and balance sheets of the company in its probe. The accused were believed to have diverted funds of consortium banks to the tune of Rs 3,822 crore. CBI is also probing into allegations of Rs 794 crore written off in the name of adjustments towards reserves and surplus.
The probe also revealed that financial documents were manipulated. The difference amount of manipulation was to the tune of Rs 2,298 crore.
In the FEMA case, it was found that Rs 15.34 crore was transferred to Transstroy Singapore PET Ltd, a subsidiary of Transstroy India, in 2013-14 from Bank of Baroda without the permission of the lenders.
It may be recalled CBI sleuths had conducted searches on the premises of the accused earlier.