ED raids premises of Chadalavada Infratech in Hyderabad, Ongole
On Thursday, agents from the Directorate of Enforcement (ED) conducted raids at the Chadalavada Infratech Limited (CIL) locations in hyderabad and Ongole, Andhra Pradesh. The corporation and others were the subject of searches carried out in compliance with the Prevention of Money Laundering Act (PMLA), 2002, in relation to a bank fraud investigation.
Based on a formal complaint filed by the CBI, ACB, hyderabad against Chadalavada Infratech Ltd., its director Chadalavada ravindra Babu, and other individuals, the ED authorities began an investigation. The bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">state bank of india, hyderabad, filed a loan fraud complaint that served as the basis for the Federal Investigation. The complaint claimed that there had been theft, deception, and criminal conspiracy resulting in the loss of Rs. 166.93 crore in public funds.
A significant portion of the loan sum was misused by Chadalavada Infratech Ltd, an Engineering, Procurement, and Construction (EPC) contractor that executes power infrastructure projects, for purposes other than those for which it was authorised.
The findings of the ED investigation showed that CIL was taking advantage of credit facilities from bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">state bank of india, both fund-based and non-fund-based. Additionally, its directors had colluded to misuse the loan funds and divert them by using a variety of strategies, including accommodating letter of credit transactions, roundtripping of funds in the form of equity investments, and transferring loan amounts into the accounts of directors, employees, and their families, among other things.
A significant amount of the credit letters were given to companies registered in the names of family members and staff members without any underlying company, according to the ED Investigation. Huge sums of money were therefore misappropriated. Properties were bought under the names of directors, family members, and other parties using the money that was misdirected. Documents pertaining to properties suspected of having been purchased with the proceeds of crime were found during the searches.