The Central Bureau of Investigation has registered a case against Hyderabad-based infrastructure company Transstroy (India) Ltd and its directors for alleged bank fraud estimated at more than ₹7,926 crore.

Following a complaint by Canara Bank, which along with its consortium partners had extended credit facilities to the infra firm, the investigating agency has registered a case against the company and named its Chairman and MD, Cherukuri Sridhar, and additional directors, Rayapati Sambasiva Rao, former MP, and Akkineni Satish, in the case.

The private firm based at Hyderabad and its directors had availed credit facilities thorugh multiple banking arrangements from Canara Bank and other lenders. A consortium was formed with other banks, led by Canara Bank, to extend financial support for some of its infra projects, according to a CBI statement.

It is alleged that the accused was involved in falsification, fabrication of books of accounts, fudging of stock statements, tampering of balance sheets, and round tripping of funds. The accused have allegedly misappropriated bank’s funds and diverted the loan amount sanctioned by the banks and caused loss of ₹7,926.01 crore to Canara Bank and other banks. The account later became a NPA and the fraud was reported.

According to information, the CBI teams conducted searches at the premises of the private company, other accused at Hyderabad and Guntur, which led to recovery of incriminating documents.

The company was engaged in the development of a numer of highway projects and was handling the contract or construction of the Polavaram project in Andhra Pradesh. However, due to delays in execution, the contract was later handed over to Navayuga and again to MEIL.

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