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Bank Guarantee fraud of Rs 53 cr in Hyd’bad unearthed

EOW arrests 2 directors of an Andhra company

Hyderabad, Dec 24: The sleuths of Economics Office Wing (EOW), Cyberabad busted Bank Guarantee (BG) fraud to the tune of over Rs 53 crore by arresting Managing Director and Director of M/s Kompass Infrastructures Private Limited.

On credible information, the EOW arrested Kattamidi Santosh Reddy (36), Managing Director, M/s Kompass Infrastructures Private Limited of Sanathnagar, Ranga Reddy district and Nekkanti Srinivas (51), Director, M/s Kompass Infrastructures Private Limited of Vasantha Nagar Main road, KPHB here for the offence.

Kondakal Gopal (42), Director, M/s Kompass Infrastructures Private Limited of Sai Nagar, Madhapur and Somavarapu Surender Reddy (52), Director, M/s Kompass Infrastructures Private Limited of Tyagaraya Nagar, Vedayapalem, Nellore, Andhra Pradesh were absconding in the case, a police release here said on Friday.

A complaint was lodged by AGM of Union Bank, Kondapur on July 8, 2021 and stated that the Directors of M/s Kompass Infrastructures Privated obtained Bank Guarantees from complainant’s bank branch at Kondapur to the tune of Rs.53,18,50,093 in a total of 39 transactions in favour of various beneficiaries like Hella Infra Market Limited, HPCL, Infinity Projects and among others. After obtaining the said BG from the bank, the accused Managing Director approached the branch and returned the BG and closed the transaction.

Recently the complainant bank came to know that, in many of these transactions the accused has not closed his transaction with the beneficiary company but he fabricated a fake BG and closed the transaction with the bank.

On verification by the complainant bank, the same BG with the same number is available with both the bank and beneficiary as well. The accused either submitted fabricated BG to the beneficiary company or submitted the fake one to the bank for closure of transaction.

The modus operandi was that the accused director has established M/s Kompass Infrastructures Privated which undertakes civil contract works. For procuring materials from different supplier companies, the accused has taken bank guarantees from Union Bank of India and based on the bank guarantees, 8 of the companies supplied materials to him. For taking bank guarantee from the bank, he has kept properties of one of the directors as securities and his maximum sanction limit to take bank guarantees is Rs 15 crores as per the bank norms. Beyond the 15 crores sanction limit, the bank guarantee should be closed or renewed at the bank to get a new bank guarantee in its place.

In order to get material from different companies beyond the sanction limit prescribed by the bank, the Managing Director created forged bank guarantees and submitted them to the companies. To get the new bank guarantee, he took the bank guarantee already submitted to the companies and returned to the banks with company’s letters, by creating forged letters of the companies. By doing so he has obtained 39 bank guarantees from the complainant bank and cheated to the tune of 53 crores.

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