A Hyderabad based real-estate company named Prithviram Infra & its directors have been flagged down by the Central Bureau of Investigation (CBI) for a fraud case of ₹8 crores. The directors of the real-estate firm Undavalli Raja Gopal and Boppudi Seshagiri Rao had taken an overdraft facility of ₹4 crores & LC (Letter of Credit) of ₹2 crores with a limit of ₹6 crores back in October 2016 citing business purposes. The amount was loaned from Union Bank of India’s Defense Colony Branch in Hyderabad.
The CBI recently booked the firm and its directors on charges of loan fraud to the tune of ₹8 crores. The company – Prithviram Infra is a partnership-based firm and deals in infrastructure projects across industrial, residential & commercial sectors. The partners of the firm had secured the loan via hypothecation of stocks against the LC & then current assets of the firm. The firm had also offered to provide a residential building in Kanchanbagh & non-agricultural use open land in Rajendranagar as collateral for the loan amount required for business purposes.
Couple of years after availing the loan, the real-estate firm defaulted on their repayment of the loan which resulted in the account becoming a Non-Performing Asset (NPA) in the month of November 2018. As it turned out, the property that was signed over for hypothecation i.e., collateral was claimed under the ownership of 3rd party. The bank performed an audit on the account which revealed that huge amounts of money were diverted from the account.
The bank discovered that large amounts of funds were transferred without traces of any bills or invoice to 2 companies – Navega Enviro Engineers & Consultants and Loorven Green Energy Projects Pvt. Ltd. When the bank tried contacting these 2 firms, there was no response. The CBI was then involved and soon discovered that the accused partners had committed fraud, cheating, diverted & misappropriated the borrowed funds causing illegitimate losses to the bank which amounted to ₹8.5 crores.