Pedestrians walk past a union bank of india Ltd. bank branch in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

CBI Files Charge Sheet Against Hyderabad-Based Firm In Bank Fraud Case

The Central Bureau of Investigation today filed a charge sheet against Hyderabad-based Totem Infrastructure Ltd. and its directors for allegedly defaulting on a Rs 313.84-crore loan from Union Bank of India Ltd. which was part of a Rs 1,394-crore loan given by a consortium of eight banks, officials said.

In its charge sheet filed in a special CBI court in Hyderabad, the agency charged the company, a contractor for railway construction works and other infrastructure projects, and its directors Tottempudi Salalith and Tottempudi Kavita with criminal conspiracy and cheating, they said.

CBI spokesperson Abhishek Dayal said a probe found that the company and its directors allegedly availed credit facilities between 2005 and 2012 by manipulating its financial statements. They allegedly utilised the money for personal gains by diverting the same to various other companies not having business-related activities for which the loan was advanced, he added.

“An alleged loss of Rs. 313.84 crore was caused to Union Bank of India. The accused were arrested on March 23 and are in judicial custody,” Dayal said.

Also read: CBI Books Totem Infrastructure In Rs 1,394 Crore Bank Loan Fraud Case

He said the company figured in the list of the biggest tax defaulters released by the Income Tax department in 2015 with an outstanding tax of over Rs 400 crore.

In its complaint to the CBI, the bank had alleged that the promoters were untraceable but the agency said it has tracked them down at their new place of residence and arrested them.

The bank has said that the loans given to the company had become non-performing assets in June 2012. It also said the total dues of the firm towards the consortium stood at Rs 1,394.43 crore.

Also read: RBI Imposes Rs 3-Crore Penalty On Union Bank Of India