CBI registers case against MD of Chennai-based company on Rs 124 crore loan default charge

CBI has registered a case against the Managing Director of a Chennai-based company for allegedly defaulting on a Rs 124 crore loan following a complaint from Central Bank of India.
CBI sources said the case was registered against K Srinivas Kalyan Rao, who is the Managing Director of Chennai- based Best and Crompton Engineering Projects Ltd, under IPC sections related to criminal conspiracy, cheating and forgery, among others.

They said the agency had on Saturday carried out searches in Hyderabad and Chennai in connection with the case.
An email for obtaining the company’s reaction sent to an ID mentioned on its website, meanwhile, went unanswered.
It has been alleged that the company had borrowed Rs 304 crore from a consortium of banks comprising Central Bank of India, Andhra Bank and Corporation Bank by way of Fund-Based and Non/Fund-Based limits.
Central Bank of India, which has an exposure of Rs 124 crore, had approached CBI with a complaint on the basis of which the case was registered.