Bank loan

Cbi Books City Firm for 44cr bank loan fraud | Hyderabad News

HYDERABAD: The Central Bureau of Investigation has taken action against Hyderabad-based Vijaya Aero Blocks Private Limited in connection with a 44.60 crore loan fraud.
The company, which manufactures cement bricks, had taken out loans from the Bank of Baroda but failed to repay them. The CBI named promoters – Narra Kumar Prasanna, Chigurupati Ram Prasad, Narra Prasanna Lakshmi, Narra Vijaya Lakshmi and Yeduguntla Saritha Reddy – and unidentified officials for the fraud. He alleged that the promoters misappropriated funds by diverting the loan amount to other accounts.
The company was initially sanctioned with a loan of Rs 29.5 crore. Due to lack of internal surplus fund generation, the company was unable to pay interest or installments on the loan. The company’s account was also reported as a non-performing asset.
Delhi-based MK Agarwal & Co, which carried out a forensic audit, said the borrowing company failed to comply with disclosures required under the Companies Act. The company had also taken over part of the sums of the current accounts held with other banks, we learn.
The borrowing company had shown incorrect details on the stock statements submitted to the bank to qualify for a higher credit limit. The 2019 forensic auditors found that the corporate borrower was uncooperative as per the RBI circular and fraud cannot be ruled out. The company was incorporated in 2012 and manufactured autoclaved aerated concrete bricks at its Kunsi factory in Mahbubnagar.
Hyderabad: The Central Bureau of Investigation has taken action against Hyderabad-based Vijaya Aero Blocks Private Limited in connection with a 44.60 crore loan fraud.
The company, which manufactures cement bricks, had taken out loans from the Bank of Baroda but failed to repay them. The CBI named promoters – Narra Kumar Prasanna, Chigurupati Ram Prasad, Narra Prasanna Lakshmi, Narra Vijaya Lakshmi and Yeduguntla Saritha Reddy – and unidentified officials for the fraud. He alleged that the promoters misappropriated funds by diverting the loan amount to other accounts.
The company was initially sanctioned with a loan of Rs 29.5 crore. Due to lack of internal surplus fund generation, the company was unable to pay interest or installments on the loan. The company’s account was also reported as a non-performing asset.
Delhi-based MK Agarwal & Co, which carried out a forensic audit, said the borrowing company failed to comply with disclosures required under the Companies Act. The company had also taken over part of the sums of the current accounts held with other banks, we learn.
The borrowing company had shown incorrect details on the stock statements submitted to the bank to qualify for a higher credit limit. The 2019 forensic auditors found that the corporate borrower was uncooperative as per the RBI circular and fraud cannot be ruled out. The company was incorporated in 2012 and manufactured autoclaved aerated concrete bricks at its Kunsi factory in Mahbubnagar.