CBI booked a cheating case against BNR Infra and leasing, a partnership firm and seven others for allegedly availing Asset Backed Loan (ABL) from State Bank of India (SBI), Bible House branch (RP Road) by submitting forged documents and causing loss of Rs 8 crore. The case was booked against the company having its registered office on Road No.70 in Jubilee Hills along with its managing partner B Narasimha Reddy, partner S Bindusagar Reddy, three advocates Nellutla Jagan, V Narsinga Rao and D Prabhakara Reddy, and two valuers – N Dattatreyudu and K Kishore Chand.
Sections 120B (Criminal conspiracy), 420 (Cheating), 467 (Forgery of valuable security, will etc), 468 (Forgery for purpose of cheating) and 471 (Using as genuine a forged 1[document or electronic record]) of Indian Penal Code (IPC) were invoked against them.
In his complaint, bank regional manager M Srinivasa Rao said a cash credit facility of Rs.2 crore and Bank Guarantee (BG) limit of Rs.1 crore was sanctioned to the company that was engaged in construction activity mainly into construction of buildings, roads, canals etc., in 2011.
This was sanctioned on the basis of collateral security of open land admeasuring 16,940 square yards in survey numbers 158 and 162 at Kismatpur village in Rajendranagar mandal in Ranga Reddy district. The sale deed number 1456 dated May 23, 2011 submitted in the name of Narasimha Reddy.
At that point of time, it was a proprietorship firm with only Narasimha Reddy as its proprietor. The cash credit facility was enhanced from Rs 2crore to Rs.3 crore in 2013 and was again enhanced by sanctioning ABL limit of Rs. 8 crore in 2014.
This enhancement was sanctioned on the basis of existing collateral security and an additional collateral security of a residential open plot admeasuring 266.66 square yards in survey number 109/A at Sitaramnagar in Neredmet under Malkajgiri mandal in Ranga Reddy district.
Later, the company was converted into a partnership firm and Bindusagar Reddy has been added as another partner. The limits availed by the company were classified as non-performing asset on September 26, 2015 with the outstanding loan amount of Rs.8.20 crore as the company failed to repay the money as per terms and conditions.
While trying to recover the amount under Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, the bank came to know that the collateral security documents mortgaged for the purpose by the borrower was not enforceable and the bank was unable to realize the outstanding amount by disposing off the property.
The bank found that the certificate related conversion of agricultural land into non-agricultural land was found to be forged. The same forged certificate was submitted to the bank for availing loan. The advocates and valuers allegedly gave false information to the bank.