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BW Businessworld

The Transstroy Scam: A loan default of Rs 8832 crore

ED has registered a Foreign Exchange Management Act (FEMA) case against Transstroy for irregularities in foreign exchange transactions.

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The Central Bureau of Investigation has filed an FIR against the Hyderabad based company Transstroy in a loan fraud case. The official papers of resolution professional in Transstroy India Limited scam reveal that the company owes Rs. 8832 crore to 15 banks including Canara and Union Bank of India. Transistor is currently facing a case against a bank loan fraud. The CBI in its FIR, named Transstroy, promoter-chairman Sambasiva Rao and MD Cherukuri Sridhar.

Former MP Rayapati Sambasiva Rao owned Transstroy India Ltd. could land itself in further trouble with the Enforcement Directorate (ED) deciding to issue an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act, 2002. The ECIR would be issued based on the FIR filed by the CBI against Transstroy against the bank loan fraud. The CBI has conducted searches on properties of Rayapati Sambasiva Rao and Cherukuri Sridhar MD of the company.  

ED has registered a Foreign Exchange Management Act (FEMA) case against Transstroy for irregularities in foreign exchange transactions. ED is probing allegations that the company has transferred funds to Singapore and Russia violating the FEMA rules. ED is also probing into the affairs of a joint venture company Polavaram Project Transstroy and JSC EC UES.


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The Transstroy Scam