The Central Bureau of Investigation officials raiding the office and residences of Transstroy officials in the Telugu States and in Tamil Nadu has led to a sensation. The consortium of 14 banks had given a loan of ₹7,926 crores to the Hyderabad based Transstroy Company and an additional ₹313 crore to another private company. With the companies deliberately having defaulted, the banks declared them as non-performing assets. Following a complaint lodged by the Canara Bank, the agency raided the offices, houses of Transstroy belonging to former MP and additional director Rayapati Sambasiva Rao and seized certain documents pertaining to the case. Chairman and MD, Cherukuri Sridhar and Akkineni Satish have also been named in the case.
The private companies took loans from a consortium of 14 banks and defaulted. The banks declared them as defaulters. The complaint filed by Canara Bank states that the company diverted the loan amount to another company which was a clear violation of rules and that a wrong balance sheet was provided. The Canara Bank is the lead bank in the consortium which provided a loan of ₹678 crores out of ₹7,926 crores.
