The agency also carried out raids at the premises of the company and the residences of the Tottempudis.
The Central Bureau of Investigation (CBI) arrested directors of Hyderabad-based construction firm Totem Infrastructure Ltd on Friday. Salalith Tottempudi and Kavita Tottempudi were held for cheating a consortium of eight banks led by the Union Bank of India of Rs 1,394 crore. Salalith and his wife Kavita were arrested following a day-long questioning.
The agency had registered a case against the directors, the company and unknown others on Thursday. The case was registered on a complaint filed by UBI, which stated that it was cheated to the tune of Rs 303.84 crore by the company. The total dues outstanding for the consortium is Rs 1,394.43 crore. The account became a non performing asset (NPA) on June 30, 2012, after a default on loan and interest payments.
The complaint stated promoters and directors Salalith and Kavita as the accused in the case. It is alleged that expenses such as wages, against which the funds were given, were inflated. The funds were also allegedly diverted.
The bank said that the borrowers and promoters were absconding and that their present whereabouts are unknown. The CBI then tracked their location to Hyderabad.
The agency also carried out raids at the premises of the company and the residences of the Tottempudis.
Totem Infrastructure was in the business of road construction, building construction, and water works. It was also a sub contractor for the likes of L&T, RITES, and IRCON International.
The agency had also issued a Look Out Circular (LoC) against the directors to ensure they do not escape the country. CBI also stated that they will probe why the banks did not inform them when they were cheated and the reason behind the delay in reporting the scam.
Salalith is the director of eight other companies and the agency will investigate whether he diverted the funds of those companies deliberately to make Totem Infrastructure Limited a NPA.
DIRECTOR A FRAUD
- Salalith Tottempudi is the director of eight other companies and the agency will investigate whether he diverted the funds of those companies deliberately to make Totem Infrastructure Limited a NPA.
- Totem Infrastructure was in the business of road construction, building construction, and water works.
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