CBI Books Vijayawada-Based Firm in Rs 24.81 Crore Bank Loan Fraud Case

The Central Bureau of Investigation (CBI) has filed a case against a Vijayawada-based private company, its four directors, and unidentified public officials and private individuals in connection with an alleged ₹24.81 crore bank loan fraud involving Union Bank of India. The case was registered on August 18 by the CBI’s Anti-Corruption Branch (ACB) in Visakhapatnam following a complaint from an Assistant General Manager at Union Bank’s Vijayawada Zonal Office.

The FIR names Omkara Vijayalakshmi Strips Pvt Ltd and its directors — Kota Bhanu Prasad, Kota Sravani, Kota Prudvi Venkata Teja and Kota Rahul Sai Balaji. The agency has also included unnamed public servants and private persons in the case. According to the FIR, the company, which was engaged in manufacturing galvanised pipes and other steel products, allegedly conspired with unidentified individuals in 2024 to secure credit facilities from Union Bank’s Suryaraopeta branch in Vijayawada.

The CBI alleged that the company submitted inaccurate financial statements and other documents while seeking to transfer its existing borrowing from Karur Vysya Bank to Union Bank. Based on the information provided, the bank sanctioned fund-based and non-fund-based credit facilities amounting to nearly ₹24.98 crore on February 22, 2024. Investigators have alleged that the company subsequently overstated the value of its inventory and book debts in statements submitted to the bank. During one inspection, the company reportedly declared stock valued at approximately ₹23.85 crore, while the physical stock available at the site was estimated at only about ₹25 lakh.

Despite the discrepancies, Union Bank renewed a working capital facility of ₹24 crore on May 17, 2025. A later audit reportedly detected further differences between the stock figures declared by the company and the inventory actually available. The CBI has also alleged that the company failed to provide adequate documentation supporting its reported book debts and did not furnish details concerning its outstanding debtors.

According to the agency, certain transactions were allegedly routed through other businesses to artificially boost the company’s turnover and improve its eligibility for bank credit. The FIR specifically refers to Maruthi Traders and Sri Durga Bhavani Steels, which were allegedly set up in 2024 and were not operational when the bank carried out its enquiries. The investigation has also raised questions over alleged suspicious transactions, unauthorised changes in the company’s directors and statutory auditors, as well as the movement of stock without notifying the bank.

The companys loan account was classified as a non-performing asset (NPA) on June 23, 2025, after the company reportedly failed to make interest payments. Its outstanding liability had reached approximately ₹26.05 crore, including accrued interest. The CBI has alleged that the actions of the accused resulted in a wrongful loss of ₹24.81 crore to Union Bank of India, while allegedly providing an unlawful financial benefit to the accused. The agency’s investigation into the alleged loan fraud is continuing.

Disclaimer: This image is taken from ANI.