peer re ee FIRST INFORMATION REPORT (Under Section 154 Cr.P.C.) 4 istrict: chennal Ps: 08 Chennai Year: 2022 FIR No: c0692022¢0002 Date: 06/01/2022 2. Ate ASecions ac Sectors ay Section > IB c.g rae TRI bre mR canon oT RoE Pe mato {SEL CG — ial acon by @ RIE Sava Be ac 1986 (As amereeaT Na cayay oe 3 (2) 2. Svapected ata sanctus {@) Occurrence of eencet co Time Period from bat: 2007 epee: 2019 (0) information Received at Ps soysaranat onte (2) Genera oly Retorence: Entry Nos s Date oesovane2 Temes 20:28 4. Type of Information: Written 5. Place of Occurrence: (2) Direction aistance from PS: at N (0) Address: Plat No.: Guntur and ether paces 426 4M, North Deection| Commercia Branch, city canon State: ‘andrea Pradesh District: (c) In.eaee, outside the limit ofthis Police Station, then, Name of PS: iste 6. Complainant / informant: Complainant 1 (@) name: (b) Father's/Husbane!'s Name: (€) Date/Yearof siete: ie GV Sastry GY. Panstalasastry (4) Nationality: noaN (e) Passport: Passport No. CT (1) Occupation: ba (9) Address: san WON S-4- 1013/8 lene chgude .NO.25-1-52, WARD NO.A7 NAGARAN PALES KANNAVARITH 22004 Place Ofissue 7. Details of known, suspected unknown accused with full particulars: —— PPh ec Supdt. Jof Police CB/ EQW | CHENNA? 10f 1310, a Accused 1 Name: M/s Ethne Spices Pvt tat) Adaress: -23-6/8 faya Tomers Sth Lan, Ath Coss Rone Arundeset, Genter, Guntur, Anahva Pradesh, $22002 Accused 2 rradsetty Venkata Rao(2), Father/Musband name: lorasinha Rao , Designation: Maraging Name: Deector Address: 82-416, Stone Valey, C6, Roed No.4, Banjara Hille, Hyderabed, Hyderabad, Tetzngara, 500038 2-416, stone Vol, C6, Roed No.4, Ganjor Hl, Hyderabed, Hyaaabad, Tengara, 50003 Accused 3 Name; NeTadtetty Mural Mohen(3), Father/Husband name: Narasinha Rao , Designation: Director Address: 7-7-54, 7h ine, Kakuranwven Thota, Guntur, Guntur, Andra Pade, 522002 accused 4 Name: Unknown Puble Servane(s) & Private Person(s) Address: Reasons for delay in reporting by the complainant, informant: Ne belay Particulars of properties stolen: ([—nemame—_[____Age of ropety Yate (TR) Total value of property stolen: Inquest Report/U.D. Case No. itany: Fist information contents 7 Oh Suput. Jof Pottce CBL EOW) CHENNAI 20113A written complaint dated 30.12.2021 received from Shri G.V. Sastry, Deputy General Manager, State Bank of India, SAM Branch- II, Hyderabad, wherein, itis alleged in the Complaint that M/s Ethnic Spices pvt Ltd(ESPL) represented by its Managing Director Shri Tadisetty Venkata Rao and its Director Shri Tadisetty Murali Mohan with a criminal intention to cheat SBI, Specialised Commercial Branch, Guntur, availed credit facilities by the way of Cash Credit(CC) and Stand by line of Credit to the tune of Rs 40 Crore in the year 2013 for the purpose of trading of chillies and tobacco products. The Credit facilities were secured by hypothecation of movable assets, mortgage of immovable properties and personal guarantees. Due to non repayment of the dues, the account was declared as Non Performance Account(NPA) on 26.02.2019 and the account was declared as fraud on 29.01.2020 with estimated loss to the Bank to the tune of Rs.41.97 Crores, It is further alleged that, in furtherance to criminal conspiracy, accused Directors submitted inflated/manipulated stock statements to avail full Drawing Power (DP) under Cash Credit (CC) limits , intentionally diverted the loan funds to their personal accounts and to their related firms and aiso not deposited the sales proceeds in the accounts with Complainant bank and thereby Cheated the Bank and caused wrongful loss to the State Bank of India to the tune of Rs. 41.97 Crore and corresponding wrongful gain to themselves. The complaint prima facie discloses that the accused Directors of M/s Ethnic Spices pvt Ltd ie Shri Tadisetty Venkata Rao & Shri Tadisetty Murali Mohan along with unknown public servants and unknown private persons have committed the above offences punishable U/s. 120-B riw 420, 468, 471, 477A of IPC and u/s 13(2) riw 13(1) (d) of PC Act, 1988 & 13(1)(a) r/w 13(2) of PC Act, 1988 (amended in 2018). Hence this FIR. The original complaint dated 30.12.2021 received from Shri G.V Sastry, Deputy General Manager,SB|,SAM-II Branch, Hyderabad is attached herewith, May be treated as part & parcel of this FIR. 13. Action taken: Since the above information reveals commission of ofenca(s) u/s az mentioned at Item No.2 (2) Registered the case and took up the investigation: Yex (2) Directed Name of 10 Alexxe Ranke INSPECTOR (EOB Chenoa!) No: 16621 1 take the investigation Refused investigation due to: on (4) Transferea To PS: Districts (0npoint of jurisdiction. a Complaint Fm read aver to the complainant/Infermant, admitted to be correctly racordes informant fee of cost. ROARK, copy given to the complainant 30 13 swat value CRI FOW | CHFNNAESignature/ Thumb Impression of 14. he complainant/informant 15. Date ant time of dispaten to the Court: Oy Lb Signafure of officer inreRarge Police station Name: Muro Ramone SSUPOT. OF POLICE (#08 Supdt. of Polica CBI/ EQW | CHENNA} The Hon'ble Pepa Speed Tidge [Ake 45% CBI Cases. Nishukapednary Dodbra Psoclule hoo haus on 06.01.2033 Supdt. of Police CBI/ EQW / CHENNAI 4013He, abHaw He 230,05 ured ee te e STATE BANK OF INDIA ‘The Head of Branch \ CBl, Economic Offences Branch ~ Rajaji Bhavan, Beasant Nagar, CHENNAI-630080 ‘SBI/SAMB-II HYDIYSRI21-22/ Date: 30.12.2021 Dear Sir, Mis Ethnic Spicos Pvt Ltd (ESPL) Complaint regarding Fraud, Cheating and other offences committed by the Compan Director(s) & Guarantor (s) 1. Mis. Ethnic Spices Pvt Ltd (Borrower), having its Registered Office at 6-23-6/8, Jaya Towers, 5" Lane, 4” Cross Road, Arundelpet, Guntur, Andhra Pradesh ~ §22 002 2. Shri Tadisetty Venkata Rao Slo Shri Narasimha Rao (Managing Director, Promoter and Guarantor), residing at 8-2-416, Stone Valley, C-6, Road No. 4, Banjara Hills, Hyderabad = 500 034. 3. Shri Tadisetty Murali Mohan S/o Shri Narasimha Rao (Director, Promoter and Guarantor), residing at 7-7-51, 7" Line, Kakumanuvari Thota, Guntur, Andhra Pradesh — 522 002. ae @ +91-40-23147100 tC ao. 5-4-10 a 1 Sbi.18359@sbico.Jin Website: wuwsbicoin With reference to the above, |, G V Sastry, presently working as Deputy General Manager, Stressed Assets Management Branchll, D No. 3-4-1013/A, 1 Floor, CAC, TSRTC Bus Station, Kacheguda, Hyderabad - 500 027, hereby lodge the complaint as against the above persons on a prescribed format stating inter alia the details of the Company and the credit facilities sanctioned and the fraud perpetrated on the Bank by the accused persons mentioned therein. We shall be glad, if you will kindly consider our complaint and take necessary action against the accused persons as per the provisions of the Criminal Law. Yours faithfully, \ ex + Deputy General Manager gh retin wz fis STATE BANK OF INDIA a aigr sees Vopuly General Manager WE.C.UH. SIAL, GRATE oi B11-48359, Hyderabad Page of 9 bank.sbi igs wige are 2 I roe afar wert aren = 11 Stressed Assets Management B= S068 wos NAL B4-10tarY 12a, __O.No.34-10T3/A 1st Foc, Asda wa wert CAC TSRIC Bus Station, carne, Sevrart 500027. Kachiguds, Hyderabad 5000027 Website:varwsbicoin Websitewvvsbicain 491-40-2980 791‘Name of the Bank State Bank of India Name of the Branch ‘Stressed Assets Management Branch-ll, Hyderabad, (Account migrated from Specialised Commercial Branch, Guntur on 19.08.2019) Date of lodging of | 30.12.2027 comptaint Time, date & place of |+ The fraud perpetrated by the accused persons came fo light ‘occurrence of fraud When a Forensic Audit conducted by M/s Choksi & Choksi LLP, vide their report on 21.12.2019. * The forensic audit was conducted for the period May 2014 to May 2019. + The fraud was declared in the account by the Fraud Identification Committee in its meeting dated 29.01.2020, * Fraud had taken place at our Specialised Commercial | Branch, Guntur where the accused persons have diverted the funds with malafide intention to defraud the creditors and to gain unlawfully at the cost of the Bank's funds. + This fraud complaint may be looked into interalia the complaints for other sister concems namely Ethnic Tobacco India Lid, Ind Tob International Pvt Lid & Ethnic Agros Ltd, which the bank has filed with CBI on same date. Name of the | Mr G V Sastry, Deputy General Manager Complainant SAM Branch ~ II, D No. 3-4-1013/A, 1% Floor, CAC, TSRTC Bus Station, Kacheguda, Hyderabad -- 500 027 ‘@) Brief history of account Ethnic Spices Pvt Ltd (ESPL) was originally incorporated in the name of M/s Venkata Narasimha Cold Storage Pvt Ltd, on 23.03.2005. Later, on 14.07.2006, the name was changed as M/s Sankeertana Cold Storage Pvt Ltd and again, on 31.05.2007, name was changed as M/s Ethnic Spices Pvt Ltd The Company was promoted by Mr T Venkata Rao and Mr T Murali Mohan. MrT Venkata Rao, Managing Director of the unit was looking after the marketing aspects of the unit. Mr T Murali Mohan, Director was looking after the tobacco procurement aspects, ‘Though ESPL was initially floated to engage in trading of chillies, promoters have later decided to change the activity of the company to trading of tobacco, in order to support the increasing business of ETIL, the flagship company of Ethnic Group. ETIL has been the major customer of ESPL. ESPL availed FB (CC and SLC) credit facilities aggregating to Rs 40 Crore from our Bank. These credit facilities were inter alia secured against hypothecation of movable assets, mortgage of immovable properties, and Personal Guarantees, more particularly described in Annexure-I. Account became NPA on 26.02.2019 due to (i) Submission of inflated / manipulated Stock statements and (ii) Transfer of funds to the personal accounts of directors in Page 2 of 9(% addition to lower sales coupled with lower margins, cash losses etc. * OA 579 of 2019 filed against ESPL on 17.06.2019. Interim Application (IA) 1270/19 filed for directing defendants to furnish other assets by way of Sworn A\fidavit. Notices were sent to borrower/guarantors both in OA and IA. The case posted to 02.11.2020 for fresh notice to the defendants. * 13(2) Notice was served on 30.03.2019 and 13 (4) possession notices issued and Symbolic possession of properties taken on 21.08.2019, 22.08.2019 & 29.08.2019. Sale notice was served on 30.07.2020 and auction was scheduled on 21.10.2020. However, no one participated in the auction. * The details of credit facilities sanctioned by SBI and the position of account as on 30.09.2020 are as under: {Rs in Crore) Si Facility ~ Limits No. |" Limit ~ | Outstanding 1._[ 6G 35.00 35.28] 2. [Sic 5.00 5.00 Total FB 40.00 40.28 4_ [BG Nil Nil Total NFB Nil Nil Total 40.00 40.28 The account was declared as NPA on 26.02.2019. Total Dues as on 30.09.2020 is Rs.55.18 Crores (including notional interest of Rs.14,90 Crores from 01.12.2018 to 30.09.2020) The value of total security available to SBI is Rs. 13.21 Crores (Please refer to Annexure-l for details of the securities). Accordingly, likely loss to the Bank is to the tune of Rs.41.97 Crores. ) Brief details of fraud J Diversion of funds and other instances of fraud as per Forensic Audit report dated 21.12.2019 submitted by M/s Choksi & ‘Choksi LLP. Diversion of funds through: + Drawing from Cash Credit Accounts by submitting false / inflated / manipulated Stock statements ‘+ Huge amounts transferred from CCICA to/fro in the accounts of the Directors + Falsifying or fabricating books of accounts, entries, Vouchers or financial statements, Detailed findings are placed at Annexure-I, In view of the above facts, the Fraud Identification Committee resolved to identify the account as Fraud on 29.01.2020 on the | below mentioned points 1._Diversion of funds ete. Page 3 of 9Names of Directors of Mis Ethnic Spices Pvt itd: Mis. Ethnic Spices Pvt Ltd, 6-23-6/8, Jaya Towers, 5* Lane, 4 Cross Road, Arundelpet, Guntur, Andhra Pradesh — 22 002 [CIN: U45200AP2005PTCO45698 PAN: AAKCS7249C] Shri Tadisetty Murali Mohan S/o Shri Narasimha Rao (MD, Promoter and Guarantor), 7-7-51, 7® Line, Kakumanuvari Thota, Guntur, Andhra Pradesh — 522 002 [DIN: 00302399, PAN: AEOPM8522P, Passport No.: L 8685330] Shri Tadisetty Venkata Rao S/o Shri Narasimha Rao (Director, Promoter and Guarantor), 8-2-416, Stone Valley, C-6, Road No. 4, Banjara Hills, Hyderabad — 500 034 [DIN: 00302295, PAN: ACCPT9255G, Passport No.: 21866105] Role of public servants not detected till now. However, involvement of unknown Public servants may also be examined during investigation. Role of Directors of Mis Ethnic Spices Pvt itd, including the role of public servants: * Directors of M/s Ethnic Spices Pvt Itd were involved in diversion of funds and other instances of fraud as reported in Forensic Audit report dated 21.12.2019, in order to gain unlawfully at the cost of the Banks’ funds, Mr T Mumali Mohan and Mr T Venkata Rao are Promoter Directors of the company which is part of four group companies, Grave irregularities | Staff Accountability Examination is under progress. committed by public servants 70. Role of common conspirator__| The Bank is not suspecting any common conspirator. 11 The names and addresses of | 1. Forensic Auditor (Name with address) : M/s Choksi & prosecution witnesses Choksi LLP, Chartered Accountants, 15/17, Raghayji B Building, Gowalia Tank, Off Kemps Corner, Mumbai — 400 036, 2. Mr. B Bhanu Prakash (Assistant General Manager & Relationship Manager at SBI, Specialised Commercial Branch Branch, Guntur, posted from 14.10.2016 to 19.08.2019 till the migration of accounts to SAM Branch-ll, Hyderabad) and Mr. S S Rama Krishna (Chief Manager & Relationship Manager posted for the rior period), where the fraud took place / accounts were maintained at the material time. (Branch Address: The Deputy General Manager, State Bank of India, Specialised Commercial Branch, 26-1-52, Ward No.17, Nagaram Palem, Kannavari Thota, Guntur, Andhra Pradesh ~ 522 004 2 Action ‘taken by the bank | Staff Accountability exercise conducled by Sa V against public servants | Ramanujam, DGM (Retd) and he has submitted the report including departmental | on 17.07.2019. However, Commercial Clients Group Proceedings initiated. If so, | Regional Office (CCGRO) appointed Mr S Rayappa, DGM details thereof for re-examination of staff accountability in view of declaration of account as ‘fraud’. He had submitted the report to CCGRO. Outcome is awaited. B. Whether investigation | Forensic Ausit report dated 21.12.2019 submitted by M/S | Conducted by the Bank. If Choksi & Choksi LLP. Major findings are placed at Lyes, details of the _major| Annexure-ll, Page 4 of 9findings 7%. Availability of original documents The original documents are available with the following: The Deputy General Manager, State Bank of India, Stressed Assets Management Branch-ll, D No. 3-4. 1013/A, 1% Floor, CAC, TSRTC Bus Station, Kacheguda, Hyderabad — 500 027. 15. Whether Directors of Mis Ethnic Spices Pvt Itd were involved in any other fraud in the bank on an earlier occasion No such information as per available record. 16. Whether the fraud has Interstate, International ramification. If yes, give the details No, as per the available information. However, the possibility cannot be ruled out. 17. Whether — registration is authorized by CVO of the Bank. Yes, the Officer is authorized to file complaint against the Company and the complaint has been vetted by the CVO of our Bank. 78. Role of unknown publi servant Role of unknown public servant not detected. However, the same may also be examined during the investigation of 19. ‘Signature of the complainant with seal and date rime. sredta we 5 For Exe BANK OF INDIA popu ouhorat Manader ‘erall, eo! Page 5 of 9ANNEXURE - DETAILS OF SECURITIES Primary: Si. | Type Description of Security Total Value | Our Share | Date of No.| _ of (@54.86%) | Valuation Facility 1. | FBWC | Hypothecation charge on current} Nil Nil Stock & asseis of the company (Stock & Receivable Receivables) on first pari-passu Statement not basis with existing and proposed submitted after working capital “lenders under 28.02.2019 COR, Total Nil ui Collateral: si. | Type Description of Security Total Value | Our Date of No. | _ of Share Valuation Facility 1. |FBWC | Equitable Mortgage on Eleven | MV: 1554 | Mv: 15.54 AS per immovable properties RV:13.21 | RV: 13.21 | Valuation #(Property details) | Report dated 18.03.2020 by Navnirman a Associates MV: 15.54 ‘Total (Primary + Collateral) RV: 13.21 # Details of properties ‘S.No Particulars EM of An extent of 999 sq yards of site siluated at D.No. 1123, 1107/1, Old D\No. 1107, Old Ward No. 14, New Ward No. 15, Block No. 13, T.S. No. 727 & 742, Near D.No. 19. (2-20, Etukuru Road, Guntur Municipal Corporation, Guntur belonging to Sri Tadisetty Venkata Rao Slo Narasimha Rao (Document No. 8111/2007 dated 23.05.2007) EM of An extent of 999 sq yards of site situated at D.No. 1123, 1107/81, Old D.No. 1107, Old Ward No. 14, New Ward No. 15, Block No. 13, T.S. No. 727 & 742, Near D.No. 19. 2-20, Etukuru Road, Guntur Municipal Corporation, Guntur belonging to Sri Tadisetty Murali Mohan S/o Narasimha Rao (Document No. 6763/2007 dated 31.05.2007) EM of An extent of 999 sq yards (449 % x 2 = 999 sq yds) of site situated at D.No. 1723, 1107/B1, Old D.No. 1107, Old Ward No. 14, New Ward No. 15, Block No. 13, T'S. No 727 & 742, Near D.No. 19-12-20, Near Etukur Road, Guntur Municipal Corporation, Guntur belonging to Smt Tadisetty Venkata Ramana Wio Narasimha Rao (Document No 8109/2007 dated 23.05.2007 and Doc No.8110/07 dated 23.05.2007) EM of An extent of Ac. 0.95 cents of land at Sy.No.100/3A,100/3C of Lam Village and Panchayat, Guntur District belonging to Sri Janjanam Vidyanath S/o Kutumba Revidaish (Document No. 1234/2007 dated 08.03.2007) EM of Ac 0.79 cents + Ac 0.79 cents + Ac 1.00 cents of land situated at D Nos 247/48, | 247/4A1,A2, Nadimpalem, Guntur District belonging to Smt Tadisetty Venakta Ramana (Doc No. 364/2008 dt.23.02.2008, Doc No. 365/2008 dt.23.02.2008, Doc No. 361/2008 dt. 22.02.2008) Page 6 of 9EM of Ac 2.07 cents of land situated at 0 Nos 247/8/1,2,3, Nadimpalem, Guntur District belonging to Shri Tadisetty Murali Mohan. (Doc No. 1280/2008 dt. 02.06.2008) @) An extent of Ac 1.27 cents of land sitauted at Sy.No.s 242/81 of Nadimpalem Vilage, Adjacent fo Sri Sai Siri Residential Lay Out, N.H-5, Thummalapalem Gram Panchayat, Nadimpalem, Guntur District belonging to Sri Tadisetty Venkata Rao, Slo Narasimha Rao (Doc No. 6239/2010 at. 22.11.2010) ‘An extent of 800 sq yds of vacant site situated at Survey No. 87, Korilepadu village, Gorantla Gram Panchayat Area, Koritepadu Sub-District, Guntur District, Present Guntur Municipal Corporation Area belonging to Sri T Venkata Rao. (RS. No. 169/2013 dt 03.01.2013) Vacant site of 4077.20 sq yds of site situated at Survey No. 122/A2, Agathvarappadu Village, Agathavarappadu Grampanchayath Area, Pedakakani Sub-District, Guntur Dist belonging to Shri T Murali Mohan. (R.S. No. 1348/2013 dt. 04.03.2013) An extent of 1253 sq ft with the House property there on it (Ground floor: 045 sq ft, First floor: 945 sq ft, Second floor: 108 sq ft) situated at No.L-22, Ward No.74, LIC Colony, 6” Cross, 10" Sector, Jeevan Bhima Nagar, Close to Business Hub of Thippasandra Main foad, HAL 3 Stage, Bangalore — 75 belonging to Shri T Murali Mohan and Smt T Amala. (R.S. No. 6296/04-05 executed on 21.03.2005) 10 An extent of 1344 Sq yds of residentiel area situated at Plot No.1,2,3 and 4 , Door No: 128/3, Agathavarappadu Village & Panchayat, Pedakakani Mandal, Guntur District belonging to Shri Tadisetty Murali Mohan (RS No.7022/2014 and 7023/2014, dated 31.07.2014) 1 An extent of 1145.22 Sq yds of residential plot situated at S.No, 1264/1, Plot No. 22,23,24,25,26,27, north side of 21 & north side of plot no. 28, Tanguturu Village & Mandal, Prakasm District belonging to Shri Unnam Venkateswarulu (RS No.877/2014, dated 03.02.2014) Name of the Guarantor Net Means | Basis / Opinion Report as on T Venkat Rao 478] Opinion report dated 22.12.17 based on AL statement 31.03.2017 T Murali mohan 675 =do~ T Venkata Ramana 0.50) T Narasimha Rao 1.75 TAmala 0.50 Janjanam Vidyanath 0.53 U Venkateswarlu 2.70 Total 17.48 Page 7 of 9-@ ANNEXURE - II ings | Observations as per Forensic Audit report dated 21.12.204 Based on the review of books of accounts, documents and relevant procedures performed by the Choksi & Choksi LLP, and subject to data limitations, the auditor team has noted the following instances indicating Point No. 4 Company had submitted the last Stock statement as on 28.02.2019, as per which they were eligible for full drawing Power (OP). However, the Stock Audit conducted as on that date and report submitted on 16.05.2019, revealed that there are no stocks and the DP in respect of all the Units is Nil. During the unit inspection conducted by our officials on 02.05.2019, it was observed that there were no stocks. The Forensic Audit report had pointed out the same. The explanation for erosion of current assets given by the company that ‘the slocks qually deteriorated significantly, the stock statements were submitted based on the cost of acquisition of stocks and costs attendant with the inventory carry, to maintain Drawing Power in books, a fact known to all concerned while allotting monthly DP is not satisfactory. Hence, we observe that the company submitted inflated/manipulated stock statements to avail full DP under CC limits and also not deposited the sales proceeds in the accounts with Bank/Consortium Banks. Point No. 2 Further, the Forensic Auditors observed that huge amounts were transferred from CCICA tolfro in the accounts of the Directors. The details are furnished as under: Transactions in the accounts of ESPL: (Rupees in Crore) Particulars Withdrawal | Deposit Received from/Transfer to CA 30211071286 during 2016-17 0.04 Received from/Transfer to CA 30211071286 during 2017-18 2.15 Received from/Transfer to CC 30807106780 during 2014-15 0.03 Received from/Transfer to CC 30807106780 during 2015-16 0.05; =| Received from/Transfer to CC 30807106760 during 2016-17 0.43 Received from/Transfer to CC 30807106780 during 2017-18 ~ Received from/Transfer to CC 30807106760 during 2018-19 03 = TOTAL 2.40 739 | Point No. 3 Further, specific instances of transfer of funds has been made out by the forensic auditor as under: a. On scrutiny of appraisal letters and property agreement as provided to us by the Bank, it was observed that the properties located at Agathavarappadu Village, Guntur District vide Title Deeds No. 7022/2014 & 7023/2014 were mortgaged with the Bank towards the dues of M/s Ethnic Spices Pvt Ltd. These properties were purchased from the funds diverted from Ethni¢ Tobacco India Ltd (ETIL) through the personal account of Mr. Tadisetti Murali Mohan. Page 8 of 9b. On scrutiny of ETIL SBI EPC A/c no. 0031500944508, it was observed that fund amounting to Rs.1.57 crore was disbursed and transferred to ETIL SBI CC A/c No. 0010949488608, On further scrutiny of ETIL SBI CC A/¢ No. 0010949488608, it was observed that of the total funds disbursed sum amounting to Rs. 0.60 crore was transferred to Saving Bank Alc no. 31827094514 of director! promoter i.e. Mr. Tadisetti Murali Mohan. . On scrutiny of ETIL LVB CC Alc- 2776390000959, it was observed that fund amounting to Rs.0.45 crore was transferred to ETIL SBI CC Alc No. 0010949488608. On further scrutiny of ETIL ‘SBI CC Alc No. 0010949488608, it was observed that the said fund was transferred to Saving Bank ‘Account no. 31827094514 of promoter! director i.e. Mr. Tadisetti Murali Mohan. 4. On scrutiny of ETIL SBI CC A/c No- 0010949488608, it was observed that sum amounting to Rs. 0.20 crore was transferred to Saving Bank A/c no. 31827094514 of director! promoter ie. Mr. ‘Tadisetti Murali Mohan, ©. On scrutiny of the SBI Savings Bank A/c no. 31827094514 of director! promoter i.e. Mr. Tadisetti Murali Mohan as provided by the Bank, and based on narrations mentioned therein it was observed, the funds transferred in the said account was utilized for purchase of aforesaid property. f. The explanation given by the promoters is that ‘the amounts were taken out from the system as remuneration advances (subsequently adjusted) and properties purchased were mortgaged to the Bank only and Unsecured loans earlier pumped into the system were drawn, However, properties Purchased were mortgaged to the Bank’. The explanations are vague and evasive. It is evident that the funds borrowed from Banks are mis-utilised / mis-appropriated for purposes other than for which the Banks had released the funds. Page 9 of 9