YSR Congress leader accused for 947 crore loan default

HYDERABAD: On Tuesday, the houses and offices of YSR Congress Party leader and industrialist belonging to the West Godavari district K Raghu Rama Krishnam Raju searched by the Central Bureau of Investigation(CBI) in Gachibowli and in the state of Andhra Pradesh, for alleged loan default of Rs 947 crore.

The investigating agency said that, the company of the leader Ind Barath Power Ltd took loans of Rs 2,655 crore from three non-banking financial companies — Power Finance Corporation, Rural Electrification Corporation Ltd and India Infrastructure Finance Company Ltd. The agency stated the company to be defaulted in payments of Rs 947 crore which have converted into non-performinFIR, CBI, Crime, YSR Congress leaderg assets.

The CBI officials have reportedly recorded the statement given by Raju after a complaint by banks regarding default of Rs 600-crore loan. The industrialist had failed to repay the loans after incurring losses and applied for a one-time settlement of the loans.

According to sources, the CBI filed an FIR basing on the charges of misrepresentation, cheating, forgery, criminal breach of trust and causing huge wrongful financial losses to lenders. "Axis Bank has not only failed to discharge its responsibility to keep all the documents of ownership of permitted investment in its custody, but it also did not inform the lenders the same at any point of time thereby misutilisation of the funds," the FIR said.