PNS | Vijayawada
The Enforcement Directorate (ED) conducted raids on the residences and offices of former MP and Telugu Desam Party (TDP) leader Rayapati Sambasiva Rao and his associates at Transstroy (India) Private Limited, in connection with alleged siphoning of bank loans on a large scale.
The ED, comprising 15 teams, initiated the searches early in the morning at various locations, including Jubilee Hills, Manikonda, Punjagutta, Hyderabad, as well as Guntur and other areas. The authorities are investigating the suspected default of loans amounting to Rs 9,394 crore that were taken from different banks by Transstroy.
The ED carried out searches on Malineni Sambasiva Rao, a director at Transstroy India Private Limited, suspecting the transfer of funds from Transstroy to various companies where Sambasiva Rao holds directorship. Transstroy, which had secured the contract for the multi-crore Polavaram Irrigation Project in Andhra Pradesh, abandoned the project midway, allegedly diverting funds through fictitious companies that listed servant maids, sweepers, and drivers as directors.
The case came to light in 2020, and the Enforcement Directorate registered it under the Prevention of Money Laundering Act, based on an FIR filed by the Central Bureau of Investigation (CBI). The ED’s allegations include Rayapati’s purported diversion of Rs 16 crore from Transstroy to foreign countries like Singapore, Malaysia, and Russia.
Rayapati Sambasiva Rao, a former MP, is facing charges under Section 120 (b), 420, 406, 468, 477 (a), and Section 13 (2) of the Prevention of Corruption Act, following a complaint lodged by Union Bank of India. The bank accused Rayapati of failing to repay the loans, prompting the CBI to conduct raids at his residences and offices in Hyderabad, Vijayawada, Guntur, and Delhi.
Transstroy’s outstanding loan amount stands at a staggering Rs 8,832 crore, with the CBI suspecting that Rs 3,822 crore was diverted to foreign accounts.
