ED raids Transstroy of Rayapati Sambasiva Rao in Hyderabad, Guntur

HYDERABAD: Sleuths of the Enforcement Directorate on Tuesday conducted searches at Transstroy India Private Limited, a company owned by former MP and TDP Leader Rayapati Sambasiva Rao in connection with the Rs 9,394 crore loan fraud.

The searches were conducted simultaneously at Hyderabad and Guntur. The residence and offices of Malineni Sambasiva Rao director of Transstroy Power Project, Techno Unit Infra Tech, Kakatiya Crystal Power Limited, and Transstroy Road Project were also under the ED scanner. ED said that money from Rayapati’s companies was diverted to that of Malineni.

The ED registered a case against Transstroy in connection with a multi-crore bank loan fraud considered to be the biggest loan scam in the country. Rayapati’s company which bagged the contract of the Polavaram Project in Andhra Pradesh allegedly diverted money into several fake companies. The company obtained a loan of Rs 9,394 crore from Canara and 13 other banks.