On a complaint by the bank, CBI registers a Rs1,394.43 crore fraud case against Hyderabad firm Totem Infrastructure Ltd
The Hush Post: Close on the heels of Punjab National Bank (PNB) and State Bank of India (SBI), now the Union Bank of India (UBI) has been hit by a bank fraud and the Central Bureau of Investigation (CBI) has lodged an FIR in connection with a Rs1,394.43 crore fraud case against Hyderabad a firm Totem Infrastructure Ltd. This FIR has been registered on the basis of a complaint from the Union Bank of India.
The case was registered on Thursday against Totem Infrastructure’s promoters and directors Tottempudi Salalith and his wife Tottempudi Kavita.
After the Reserve Bank of India (RBI) issued directions to the banks to file complaints in case of companies default, the number of cases of bank frauds has continuously been increasing. The most recent case came a couple of days ago against the Kanishk Gold Pvt. Limited on State Bank of India (SBI) complaint.
Union Bank of India’s industrial finance branch of Hyderabad had given a complaint against Totem for cheating the bank of Rs313.84 crore, Live Mint reported on Friday.
The CBI said the Union Bank of India had recently given it a complaint against Totem Infrastructure.
The complaint by Union Bank alleged “the company had diverted funds by opening accounts outside the consortium and through payments of wages by showing excess expenditure and inflated stocks. The entire sale proceeds were not allegedly routed through the dealing branches of consortium banks.”
Union Bank of India declined to comment on the matter, Live Mint reported.
CBI reportedly said it had tracked the promoters down and “have located the accused at a new place of residence and searches are underway”.
The CBI added in a statement that “the said private company (Totem) based at Banjara Hills, Hyderabad, was in the business of EPC (engineering procurement and construction) contractor engaged in road projects, water works, building structures and also undertook works as a sub contractor to various companies.”
Totem Infrastructure did not respond to calls or messages, Live Mint reported.
Earlier the CBI on Wednesday had registered a case against Chennai-based Kanishk Gold and its promoters Bhoopesh and Neeta Jain for allegedly defrauding State Bank of India (SBI) and 13 other banks to the tune of Rs824.15 crore, while also issuing lookout circulars against the accused.