Ex-CBI Chief's Son In CBI Net For Defrauding Banks

The Central Bureau of Investigation (CBI) Chennai has registered criminal cases against Srinivas Kalyan Rao, son of former CBI director K Vijayarama Rao, on the charge of borrowing huge sums from banks and failing to repay the same.

Managers of several banks, including Central Bank of India, complained to the CBI that Srinivas Kalyan Rao had borrowed Rs 304 crores cumulatively from them by submitting fake documents, but failed to repay the sum.

Central Bank of India Corporate Finance Branch Assistant General Manager R Sundara Raman lodged a complaint with the CBI stating that Kalyan Rao had obtained a loan of Rs 124 crores in 2013 for purchase of materials for his company Best & Crompton Engineering Projects Limited based in Nungambakkam in Chennai. Kalyan Rao had also reportedly borrowed Rs 60 crores from Andhra Bank and Rs 120 crores from Corporation Bank, and had furnished fake purchase bills of procuring machinery and equipment for his company, thus cheating the banks.

Following the formal complaints, the Chennai CBI sleuths registered cases and conducted raids on properties owned by Srinivas Kalyan Rao in Chennai and Hyderabad in the past two days, and reportedly seized several incriminating documents.

The CBI registered cases against Kalyan Rao under penal Sections 120(B), 420, 468 and 471 of the IPC. It also registered cases against ten others, and is expected to interrogate Kalyan Rao shortly.

It may be recalled here that Vijayarama Rao was a loyalist of the Telugu Desam Party and held ministerial posts in the united Andhra Pradesh government. However, he switched to the ruling Telangana Rashtra Samithi (TRS) recently.