CBI raids ex-MP's residences, offices in Guntur

Guntur/Hyderabad: Central Bureau of Investigation (CBI) officials on Tuesday carried out searches at the residences and offices of former MP of Guntur Rayapati Sambasiva Rao, in an alleged case of defaulting on loans taken from 14 banks.

According to sources, the CBI officials from Visakhapatnam conducted simultaneously searches in Guntur, Vijayawada, Hyderabad and Delhi in connection with investigation into a complaint against the former MP's firm Transstroy (India) Limited.

The officials also searched the premises of top officials of Transstroy, including its managing director Cherukuri Sridhar, on the allegations that they defaulted on repayment of Rs 300 crore loans to the banks.

Earlier, the former MP's firm bagged the prestigious Polavaram multi-purpose irrigation project contract during the previous TDP government. However, the company was removed from the contract later.

A case was registered against Sambasiva Rao and officials of Transstroy following a complaint from a consortium of 14 banks led by the Union Bank of India to which the firm owes around Rs 300 crore.

According to sources, the Union Bank of India officials conducted an audit into the accounts of Transstroy in which they found that the company directors had resorted to huge fraud and diverted funds for other purposes than for which the loan was taken.

Based on the report of the bank, the CBI officials registered a case and conducted searches during which they seized several key documents related to the alleged bank loan diversion. Sambasiva Rao was elected five times to Lok Sabha and once to Rajya Sabha.