Unraveling a Rs 5,700 crore bank fraud: ED finds TDP MP centric to plot
Hyderabad, Nov 25: The documents seized by the Enforcement Directorate during the searches conducted at the residence of TDP Rajya Sabha MP, Y S Chowdary has revealed bank frauds to the tune of Rs 5,700 crore.
The ED also seized high end cars that included a Ferrari, Range Rover and Mercedes Benz all registered in the names of shell companies. ED officials alleged that the MP and his associates operated nearly 120 shell companies, which were involved in money laundering activities.
The ED on Saturday conducted raids at eight locations in Hyderabad and Delhi in connection with the bank frauds by the Sujana Group. The ED officials said that the verification conducted with documents and records seized indicate that Best and Crompton Engineering Products Ltd, Chennai along with other Sujana Group companies were functioning under the chairmanship of Y Satyanarayana Chowdary, a sitting Rajya Sabha TDP MP.
Chowdary, however refuted all the allegations and said that he is neither chairman nor in any executive position in any Sujana Group of Companies as he had quit these firms in 2010. On the six cars seized, he said that three are registered in individual names and the rest in the name of companies. The three companies which own the cards are not dummy companies as is being alleged. I have a symbolic stake of 1 per cent in these companies, he also said.
The CBI's Bangalore office had registered three FIRs based on complaints by three banks after BCEPL had defaulted on loans worth Rs 364 crore. It was alleged that there was a default of Rs 133 crore at the Central Bank, Rs 71 crore in Andhra Bank and Rs 159 crore at the Corporation Bank. It was alleged that BCEPL operates from a building owned by Chowdary. The other Sujana companies too operate out of the same building.
The ED it may be recalled had conducted searches in October during which 126 rubber stamps of various shell companies were seized. The ED said that as per documents, Sujana Group was working under Chowdary's chairmanship. The directors of BCEPL have said that the MP is the persons responsible for all the activities of the Sujana Group of companies. We had acted and rendered signatures at the behest of Chowdary, they had also said, according to the ED.