FIR No RC0692023E0002 EOB CBI Chennai kesani ferro alloys 120B, 406, 420, 468, 471, IPC read with PREVENTION OF CORRUPTION ACT 13(2) R/W 13(1)(D)

Name of the Complainant: K Kalyani

Name of the Accused: M/s Kesai Ferro Alloys, Kesani Yedukondalu and others

Police Station: EOB CBI Chennai

Section: 120B, 406, 420, 468, 471, IPC read with PREVENTION OF CORRUPTION ACT 13(2) R/W 13(1)(D)

FIR No: RC0692023E0002 dated January 13 2023

A written complaint, dated 12.01.2023 has been received from Shri K Kalyani, General Manager, Canara Bank , Circle Office, Vijayawada against M/s Kesani Ferro Alloys and 3 others. It is alleged in the complaint that, Shri Kesani Yedukondalu (A-2), Smt. Kesani Raja Rajeswari (A-3) and Shri Kesani Bala Nagendra (A-4) , partners of M/s Kesani Ferro Alloys (A-1) with dishonest intention to cheat Canara Bank, Siripuram Branch, Vishakhapatnam conspired with unknown Public Servants and unknown others and in pursuance of the said criminal conspiracy, they had submitted fake/fabricated title deeds such as the Pattadar Passbook, Title Deeds, Land records and Legal Heir Certificates and induced the bank to provide credit facilities. The accused persons fraudulently /dishonestly availed the OCC/ODBD facility of Rs.4.75 Crores vide AGM CAC CO Letter ref No.: VSPCO/SME/ Sulabh/CR/NEW/853/2015/MRK dated 30.12.2015 on the recommendation of Canara Bank, Sripuram Branch, Visakhapatnam.

It is further alleged in the Complaint that in furtherance of the said criminal conspiracy, the accused persons fraudulently/dishonestly diverted Rs.59.20 lacs from the OD account to the bank accounts of two of the partners namely, Shri Kesani Yedukondalu and Shri Kesani Balanagendra. Further, the accused persons had also diverted Rs.17 lakhs to the account of a related party M/s Akshara Kartheka Granites Pvt. Ltd., which is engaged in the activity not related to the business of M/s Kesani Ferro Alloys. Also, the accused had diverted funds to the tune of Rs.93.90 Lakhs to unrelated parties.

It is also alleged in the complaint that, when the branch officials had visited the unit of M/s Kesani Ferro Alloyson 26.10.2017, they realized that M/s Kesani Ferro Alloys had cancelled the lease agreement dishonestly and surrendered the unit to M/s Yona Smelters and the unit was found to be closed and no stock was present in the unit. M/s Kesani Ferro Alloys had fraudulently cancelled the lease agreement without knowlegde of the bank.

The accused persons with dishonest intention to cheat Canara Bank, Siripuram Branch have conspired with each other and in furtherance of the said criminal conspiracy they fraudulently / dishonestly misappropriated and diverted the Bank’s funds by committing other irregularities in connivance with the unknown Public Servants and unknown others and created capital assets out of the bank’s funds for which it was not sanctioned and cheated the Bank and thus they caused wrongful loss to the Bank to the tune of Rs.5.45 Crores as on 05.12.2017 and corresponding wrongful gain to themselves.

The account was declared NPA on 05.12.2017 due to non-service of interest and non-repayment of dues and the outstanding of the loan account is Rs.5.45 crores as on 05.12.2017. The account was declared as fraud on 04.04.2018 by the Comptent authority of the Bank.

The acts of the accused persons constitute offences punishable u/s 120B r/w 406, 420, 468, 471 of IPC and substantive offences of 406, 420, 468, 471, IPC and Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988. Hence, this FIR.

The original complaint dated 12.01.2023 received from General Manager, Canara Bank, Circle Office, Vijayawada is attached herewith and it may be treated as part and parcel of this FIR.

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