Visakhapatnam (Andhra Pradesh) [India], August 21 (ANI): The Central Bureau of Investigation (CBI) has registered a case against a Vijayawada-based private company, its four directors and unidentified public servants and private persons over an alleged Rs 24.81 crore fraud involving Union Bank of India.
The case was registered on Tuesday (August 18) at the CBI's Anti-Corruption Branch (ACB) in Visakhapatnam on a complaint filed by an Assistant General Manager of Union Bank's Vijayawada Zonal Office.
The accused include M/s Omkara Vijayalakshmi Strips Pvt Ltd and its directors Kota Bhanu Prasad, Kota Sravani, Kota Prudvi Venkata Teja and Kota Rahul Sai Balaji. Unknown public servants and private persons have also been named in the FIR.
According to the FIR, the company, which manufactured galvanised pipes and other steel products, allegedly entered into a criminal conspiracy in 2024 with unknown public servants and private persons to obtain credit facilities from Union Bank's Suryaraopeta Branch in Vijayawada.
The company allegedly submitted false financial statements and other documents while seeking to take over its existing loan from Karur Vysya Bank. Based on the documents submitted, the bank sanctioned fund-based and non-fund-based credit facilities totalling Rs 24.98 crore on February 22, 2024.
The FIR alleged that the company later inflated the value of its stock and book debts in statements submitted to the bank. During an inspection, the company had declared stock worth around Rs 23.85 crore, while the physically available stock was found to be worth only around Rs 25 lakh.
The bank renewed a working capital limit of Rs 24 crore on May 17, 2025. A subsequent audit also found a major discrepancy between the declared and actual stock, the FIR stated.
The CBI further alleged that the company did not provide supporting documents for its declared book debts and failed to submit details of its outstanding debtors.
The FIR also alleged that transactions were routed through certain entities to artificially inflate the company's turnover and credit eligibility. It mentioned major transactions involving Maruthi Traders and Sri Durga Bhavani Steels, both of which were allegedly established only in 2024 and were not operational when the bank conducted its enquiry.
According to the FIR, the investigation also found suspicious transactions, unauthorised changes in directors and statutory auditors, and movement of stock without informing the bank.
The company's account was classified as a non-performing asset (NPA) on June 23, 2025, after it failed to service interest. Its outstanding dues were around Rs 26.05 crore, including accrued interest.
The CBI has alleged that the accused caused a wrongful loss of Rs 24.81 crore to Union Bank, with a corresponding wrongful gain to themselves. The investigation is underway. (ANI)
CBI registers case against Vijayawada-based firm over alleged Rs 24.81 crore bank loan fraud
