“It was alleged in the complaint that the accused had cheated the Punjab National Bank led consortium banks by way of diversion/siphoning off bank funds etc. The CBI searches on the offices and residential premises of Raju came in the wake of his revolt against the YSRC led by Andhra Pradesh chief minister Y S Jagan Mohan Reddy in the last few months. In April 2019, too, the CBI conducted searches in the residences and offices of Raju for alleged loan default of over Rs 947 crore. The loans were taken for establishment of a 666 MW coal-based thermal power project in Tuticorin, Tamil Nadu. It was alleged that the company defaulted in payments of Rs 947 crore which turned into non-performing assets.

Source: Hindustan Times October 08, 2020 16:36 UTC