Retired IPS Officer Demands ED Probe Into Rs 2,011-Crore Loan Fraud
Retired IPS officer PV Sunil Kumar urges the ED to investigate a massive Rs 2,011-crore bank loan fraud involving Ind-Barath group companies.
In a significant move to uncover a massive financial irregularity, retired IPS officer PV Sunil Kumar has formally approached the Enforcement Directorate (ED), demanding a comprehensive investigation into alleged bank loan frauds totaling Rs 2,011.72 crore. The cases are linked to companies under the Ind-Barath group, promoted by K Raghu Rama Krishna Raju.
The Scale of the Alleged Fraud
The complaint filed by Sunil Kumar points toward three specific CBI cases involving different entities within the Ind-Barath group. The alleged losses are broken down as follows:
- Ind-Barath Power (Madras) Ltd: Alleged loss of Rs 947.71 crore.
- Ind-Barath Thermal Power Ltd: Alleged loss of Rs 826.17 crore.
- Ind-Barath Power Gencom Ltd: Alleged loss of Rs 237.84 crore.
Demands for PMLA Action and Asset Tracking
Sunil Kumar has urged the Director of the ED to register an Enforcement Case Information Report (ECIR) to initiate a formal probe. He is seeking a deep dive into how the loan funds were diverted and a thorough identification of assets that were allegedly purchased using these diverted sums. The retired officer has called for strict action under the Prevention of Money Laundering Act (PMLA).
Suspicious Financial Trails
The complaint brings to light a complex web of transactions that require scrutiny. These include:
- Inter-corporate deposits and related-party payments.
- Fixed deposits and contractor advances.
- Receipts from TANGEDCO.
Beyond the corporate entities, the complaint emphasizes the need to investigate the role of bank officials and auditors who may have facilitated these transactions.
Global Links and FEMA Penalties
The investigation request extends beyond Indian borders. Sunil Kumar has asked the ED to examine investments routed through Mauritius, specifically focusing on the beneficial ownership and the original sources of these foreign investments.
Furthermore, the retired IPS officer has urged the agency to take a legal stand in the Telangana High Court. He wants the ED to move to vacate a stay on a Rs 40-crore penalty imposed on K Raghu Rama Krishna Raju under the Foreign Exchange Management Act (FEMA) in November 2023.
Sunil Kumar has stressed the urgency of the matter, calling for the immediate preservation of relevant records to ensure that evidence is not tampered with while the ED decides on the next course of legal action.