The Central Bureau of Investigation (CBI) has conducted raids on the residence and properties belonging to former MP and TDP leader Rayapati Sambasiva Rao. This is in connection with Transstroy company, a Russian based company in which Rayapati Sambasiva Rao has stakes.
Sambasiva Rao's construction firm Transstroy India Limited says to have defaulted Rs 300 crore loans to the banks.
The CBI sleuths conducted raids on the residences and offices of Sambasiva Rao in Hyderabad, Guntur, and Bengaluru and also on the premises of the Transstroy Managing Director Sridhar Cherukuri and others, sources said.
Sambasiva Rao is a five-time MP representing Narsaraopet Lok Sabha constituency and his firm bagged the prestigious Polavaram multi-purpose irrigation project contract during the previous TDP regime. However, Transstroy backed out of the contract later. Earlier, the banks, which had given loan, had conducted a forensic audit into the accounts of Transstroy that revealed that the company directors have resorted to huge fraud.
It had alleged that around Rs 250 Crore out of the sanctioned Rs 300 Crore loan got siphoned off. CBI registered a case of cheating and criminal misappropriation against Transstroy, Rayapati and other members for siphoning off around Rs 250 crore.
Initially, Transstroy got the Polavaram contract during the TDP regime and later the part of the project had given to Navayuga.