Bank fraud: CBI summons TDP leader Sujana Chowdary

The Central Bureau of Investigation (CBI) on Thursday summoned Telugu Desam Party leader and former Union minister of state for science and technology, Y S Chowdary, also known as Sujana Chowdary, to appear before its Bengaluru office on Friday in connection with the Rs 71-crore bank fraud case against Best & Crompton Engineering Projects Limited.

The CBI had registered a case in 2017 against the Chennai-headquartered electrical equipment manufacturer for allegedly cheating Andhra Bank for Rs 71 crore. Company managing director K Srinivas Kalyan Rao and four other directors were named as accused. They were charged with criminal conspiracy, cheating and forgery among others.

In November 2018, the Enforcement Directorate and Income Tax sleuths conducted searches at Chowdary’s offices and residence. His assets were also attached. Sujana Chowdary, however, denied connections with the company. In a media release, he said that he would take appropriate action.

The CBI investigation revealed that the money borrowed from the bank was transferred through bogus invoices and shell companies to Mahal Hotels which exists only on papers. Both Best & Crompton Engineering and Mahal Hotel are said to be subsidiaries of Sujana Group of Companies promoted by Chowdary.