The Central Bureau of Investigation (CBI) has registered a case against a Hyderabad-based Totem Infrastructure Ltd, for allegedly defrauding a consortium of eight banks led by Union Bank of India (UBI) to the tune of Rs 1,394 crore. The case was registered on the complaint filed by UBI which stated that it was cheated to the tune of Rs 303.84 crore by the company. The total dues outstanding for the consortium is Rs 1,394.43 crore. The account became a non-performing asset (NPA) on June 30, 2012 after a default on the loan and interest payments.
The complaint stated that promoters and directors Tottempudi Salalith and Tottempudi Kavita, both husband and wife, as the accused in the case and the company allegedly took a loan from a consortium of eight banks, of which UBI was the lead bank.
The agency also carried out raids on the premises of the company and the residences of the directors and also grilled Tottempudi Salalith and Tottempudi Kavita.
Totem Infrastructure was in the business of road construction, building construction, and water works. It was also a sub contractor for the likes of L&T, RITES, and IRCON International.
It is alleged that expenses such as wages, against which the funds were given, were inflated. The funds were also allegedly diverted.
The bank said that the borrowers and promoters are currently absconding and that their present whereabouts are unknown. The CBI has tracked their location to Hyderabad.
The agency had also issued Look Out Circular (LoC) against the directors to ensure that they do not flee the country. The agency also stated that they will also probe why the banks did not inform them when they were cheated and why the delay in reporting the scam to the agency as the company were declared NPA in 2012. Also Tottempudi Salalith is director in eight other companies and the agency is to probe whether he diverted funds in his other companies to deliberately make Totem Infrastructure Ltd an NPA.
