Companies

CBI registers case against IVRCL, MD, others for ₹4,837-crore fraud

Our Bureau Hyderabad | Updated on December 31, 2020

SBI, in its complaint, said the company, in connivance with some government officials, defrauded a consortium of banks

The Central Bureau of Investigation has registered a case against Hyderabad-based debt-strapped construction and infrastructure company IVRCL Limited, the company’s MD, Joint MD and others for a ₹4,837-crore banking fraud.

The investigating agency registered the case based on a complaint by State Bank of India, Hyderabad, against the company’s Managing Director E Sudhir Reddy and Joint Managing Director R Balarami Reddy, along with some public servants.

SBI, in its complaint, alleged that IVRCL, in connivance with some government officials, defrauded a consortium of public sector banks of over ₹4,837 crore.

Also read: IVRCL receives ₹1,655-crore bid under liquidation process

The consortium of lenders headed by SBI included IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab and Sind Bank and Union Bank of India.

In its complaint, SBI charged that IVRCL, represented by its MD and JMD, secured credit limits from the consortium of public sector banks and defaulted in payments.

They allegedly made payments to some parties through Letters of Credit ensuring the purchase transactions were not recorded in the books, as per the forensic report.

The complaint stated that the funds were routed to the company, which were then misappropriated.

Published on December 31, 2020

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