The Central bureau of investigation registered criminal cases against Andhra Pradesh legislator Vakati Narayana Reddy for cheating financial institutions. The Telugu Desam Party MLA is accused of producing fake documents for a loan and causing losses of Rs 205.02 crore to Industrial Finance Corporation of India Ltd.
An MLC from Nellore Vakati Narayana Reddy along with seven other individuals was booked by the CBI. Cases, including those under the Prevention of Corruption Act, were registered against six companies and unknown public servants who reportedly helped in executing the fraud. The MLC's firm VNR Infrastructures Limited faces the charge of obtaining Rs 190 crore loans for executing projects between 2014 and 2015 against the security of immovable property. Not only did the MLC fail to repay the loan, but the property that was offered as security was given highly inflated values with malafide intentions.
The CBI registered cases after the IFCI said that it had suffered a loss of Rs 206.02 crore. Searches were conducted at properties belonging to Reddy in Nellore, Hyderabad and Bengaluru on Friday. While the MLC is yet to be arrested, he has been asked to appear for questioning.