TDP MP YS Chowdary summoned by CBI in bank fraud case

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TDP MP YS Chowdary summoned by CBI in bank fraud case

According to sources in the CBI, YS Chowdary has been asked to appear before the Bengaluru office of the agency on Friday in connection with a bank fraud involving electrical equipment manufacture company, Best Crompton Engineering projects limited, a firm promoted by him.

The Central Bureau of Investigation has summoned former Union minister and Telugu Desam Party Rajya Sabha member YS Chowdary to appear before them.

YS Chowdary was the Minister of State for Science and Technology, and Earth Sciences in the Narendra Modi government from 2014 to 2018.

According to sources in the CBI, he has been asked to appear in the Bengaluru office of the agency on Friday in connection with a bank fraud involving Best & Crompton Engineering Projects, an electrical equipment manufacturing company, promoted by him.

The Bengaluru unit of CBI has registered three FIRs based on complaints from three banks stating that the total loss caused to the consortium of banks accounts to Rs 364 crore by Best & Crompton Engineering Projects.

The company had allegedly obtained loans from Central Bank of India (Rs 133 crore), Andhra Bank (Rs 71 crore) and Corporation Bank (Rs 159 crore) through fraud accounts and by submitting false statements.

However, YS Chowdary has not been named in the FIRs.

The summons have been issued in connection with these FIRs that were registered on February 2017 on the basis of a complaint by Andhra Bank which had extended capital, bank guarantee and, letters of credit worth Rs 60 crore to the company.

Based on these FIRs, investigations under the Prevention of Money Laundering Act (PMLA) were initiated by the Directorate of Enforcement, Chennai.