Hyderabad: ED arrests Vuppalapati Hima Bindu in Rs 1700 Cr loan fraud case

The Enforcement Directorate (ED) on Thursday arrested VMC Systems Limited director Hima Bindu in Rs 1,700 Cr Punjab National Bank loan fraud case. She will be produced in the court.

In 2018, the Central Bureau of Investigation filed a case against VMC Systems directors -- Vuppalpati Hima Bindu, Vuppalapati Venkata Rama Rao and Venkata Ramana.

The ED swung into action on the basis of FIR arrested one of the directors Hima Bindu for obtaining a loan with fake documents. A look out notice has been issued on two other directors. VMC Systems has borrowed a loan of Rs 539 crore from Punjab National Bank, Rs 1,207 crore from SBI, Andhra Bank, Corporation Bank and JM Financial Assets.

The company is said to have misled CBI in 2018 claiming that it had pending dues of Rs 262 crore from BSNL but it was found that dues are only Rs 33 crore.

VMC Systems is a Hyderabad-based telecom equipment manufacturing company. A case under Prevention of Money Laundering Act (PMLA) has registered against the three directors for duping banks.