New scam worth Rs 1395 crore registered by CBI

Bank-related fraud scams are being exposed one after another. While exposing a new scandal on Thursday, the CBI has registered a case against Totem Infrastructure for scam involving Rs 1,395 crore.

In connection with the Rs 1,395 crore scam case, the Central Bureau of Investigation (CBI) took major action and arrested the promoters and director of Totem Infrastructure Limited (Hyderabad) Totempudi Salalith and Totemapudi Kavita on Friday. It is alleged that the company scammed Rs 1395 crore from 8 banks. CBI raided the house of both the accused.

Following the complaint received by the Central Bureau of Investigation (CBI) by Union of India (UBI) against Totem Infrastructure Ltd (Hyderabad), the case was registered against this company and its promoters and director Totempudi Salalith and Totempudi Kavita. The company is alleged to have duped up Rs 1,395 crore by scamming 8 banks.

Union Bank of India’s Industrial Finance Branch alleged in its complaint to the CBI that the company fraudulently conned the bank with 303.84 million rupees.

According to the case, loan was borrowed from 8 banks led by UBI through the Consortium. Thus the consortium amount of all the banks increased to 1394.43 crores. Totem Infrastructure business of project is related to the water works, road and building construction. Totem Infra has worked on sub-contract for the well-known companies like L & T, RITES and IRCON International.

A CBI official said, “The loan was taken from 8 banks including UBI. The total outstanding of all the banks on the company is Rs 1,394.43 crores. After the default of interest and interest payments, this account was put in the category of Non Performed Asset (NPA) on June 30, 2012. This company is engaged in road construction, water works and building construction.

The lending bank claims that the company has diversified funds after taking loan from it. In order to show its losses, the company has shown its expenditure and salaries. According to the bank, promoters of the company had escaped since default in debt.