CBI Files Chargesheet Against Jagan Reddy's Party MP, 15 Others In Loan Fraud Case

In its charge sheet filed before a special CBI court here, the agency alleged that Raghu Ramkrishna Raju's company Ind Barath group had allegedly availed Rs. 947.71 crore (approx.) from a consortium of lenders for setting up a thermal power plant at Tuticorin, Tamil Nadu.

The CBI has filed a charge sheet against YSR Congress MP Raghu Ramkrishna Raju and 15 other individuals and companies in connection with an alleged loan fraud case of Rs 947 crore with Power Finance Corporation Limited (PFC) and other lenders, officials said Friday.

In its charge sheet filed before a special CBI court here, the agency alleged that Mr Raju's company Ind Barath group had allegedly availed Rs. 947.71 crore (approx.) from a consortium of lenders -- PFC, Rural Electrification Corporation Limited (REC) and India Infrastructure Finance Company Limited (IIFCL) -- for setting up a thermal power plant at Tuticorin, Tamil Nadu.

The CBI has listed as accused, borrower company Ind-Barath Power Madras Ltd, its the then CMD and Lok Sabha member Raju, director Madhusudhana Reddy, officials said.

"It was further alleged that the borrower company neither completed the project nor complied with the terms and conditions of loan agreements. The accused including borrower company allegedly transferred/diverted the disbursed project funds to create fixed deposits with Bank of India & UCO Bank and to pay advances to contractors," CBI spokesperson RC Joshi said.