Builder arrested in bank fraud case of Rs 1.30 crore

HYDERABAD: The Economic Offences Wing (EOW) of Cyberabad Police on Saturday arrested the director of a construction firm for duping a bank of Rs 1.30 crore by securing a loan using forged documents.

The police arrested Mohammed Faiz Ahmed, the Director of AFS Constructions Pvt Ltd, who had availed a working capital loan of Rs 1.30 crores from Canara Bank, Balanagar Branch, for a project by submitting forged and fabricated documents. Consequently, he defaulted in repaying the loan amount.

The modus operandi involved the accused directors of M/s ASF Constructions Pvt. Ltd., Faiz Ahmed and Mohammed Chand Pasha, conspiring with the former chief manager of Canara Bank, G. Srinivasa Babu. The trio successfully availed a working capital loan of 1.30 crores by submitting fraudulent documents related to the "Augmentation of water supply to Khammam Municipality under Mission Bhagiratha" project. They subsequently defaulted on the repayment, causing a substantial loss to the government exchequer.

Srinivasa Babu was arrested on February 20, while Chand Pasha was absconding.

The case was filed on a complaint by the Assistant General Manager of Canara Bank, Balanagar Branch.