Vijayawada, August 21, 2026 (Yes Punjab News)
The Central Bureau of Investigation (CBI) has registered a case against a Vijayawada-based private company, its four directors and unidentified public servants and private individuals for allegedly defrauding Union Bank of India of Rs 24.81 crore.
The FIR was registered on August 18 by the CBI’s Anti-Corruption Bureau (ACB), Visakhapatnam, on a complaint from Chinari Srikanta Patro, Assistant General Manager at Union Bank’s Zonal Office in Vijayawada.
The accused include Omkara Vijayalakshmi Strips Pvt Ltd and its directors Kota Bhanu Prasad, Kota Sravani, Kota Prudvi Venkata Teja and Kota Rahul Sai Balaji. The case invokes provisions of the IPC, Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act.
According to the FIR, the company, incorporated in 2017 to manufacture ERW galvanised pipes and other steel products, allegedly conspired with unidentified public servants and private persons in 2024 to take over its loan from Karur Vysya Bank. The company allegedly submitted false financial statements and other documents to obtain credit facilities worth Rs 24.98 crore from Union Bank’s Suryaraopeta branch.
The borrowers reportedly offered stocks, book debts, plant and machinery as primary security and immovable properties as collateral. However, an inspection allegedly found a major mismatch between declared and actual stock. Against declared stock of Rs 23.85 crore, only around Rs 25 lakh worth of stock was reportedly found physically available.
The FIR also alleges that two directors resigned within six months of the loan sanction without prior approval and subsequently floated Nerro Steels Pvt Ltd, which had a Rs 6.01 crore charge with Canara Bank.
An internal investigation allegedly detected suspicious transactions, undisclosed ageing of book debts, unauthorised changes of directors and statutory auditors, and movement of stock without informing the bank.
The FIR said Rs 32.19 crore out of total credits of Rs 67.54 crore was routed through Sri Durga Bhavani Steels, while major payments were made to Maruthi Traders. Both entities were allegedly established in 2024 and were not operational when the bank conducted its enquiry. The transactions allegedly indicated diversion of funds and artificial inflation of turnover to enhance credit eligibility.
The account was classified as a non-performing asset (NPA) on June 23, 2025, with outstanding dues of about Rs 26.05 crore, including accrued interest. The alleged wrongful loss to the bank has been pegged at Rs 24.81 crore.
The CBI investigation is underway.
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