Simultaneous raids were conducted by the Central Bureau of Investigation(CBI) at houses and offices of former TDP MP Rayapati Sambasiva Rao at Guntur, Hyderabad, and Bengaluru for alleged cheating and criminal case by the Transstroy(India) Limited Company which was promoted by Mr. Rao.
The case states the directors of the company were involved in a fraud case of Rs 264.31 crore including the interest amount. Rayapati was mentioned as accused No 3 by the CBI in this case.
After receiving the complaint from the Union Bank of India, the CBI has registered the FIR. The complaint lodged by the regional head of the Union Bank of India, SK Bhargava, states that the Transstroy company and its directors have allegedly diverted the funds of almost Rs 3,822 crore.
"The company had also taken loans from the projects which were said to have been terminated and the matter was not informed to the consortium of banks. Writing off such entries which are hypothecated to the consortium of banks, using the reserves of huge amounts is a fraud," the audit report states.
"Routing the proceeds through non-consortium banks is a diversion and siphoning of funds and criminal misappropriation," said the FIR.
"The CBI officials questioned my family members during searches. There is a locker in the house, but the key is with my father who was in Hyderabad," Sambasiva Rao said.
"Earlier, we were connected with Transstroy. But after the death of my mother, we have snapped all the connections with the company," he added.