The Central Bureau of Investigation (CBI) has registered a fraud case against Vijayawada-based Omkara Vijayalakshmi Strips Pvt Ltd and its four directors over an alleged ₹24.81 crore fraud involving Union Bank of India. The First Information Report (FIR) was filed on 18 August 2025 at CBI ACB Visakhapatnam, based on a written complaint by Chinari Srikanta Patro, Assistant General Manager, Union Bank of India, Zonal Office, Vijayawada.

Who Has Been Named

The FIR lists Omkara Vijayalakshmi Strips Pvt Ltd as accused number one. Its directors — Kota Bhanu Prasad, Kota Sravani, Kota Prudvi Venkata Teja, and Kota Rahul Sai Balaji — are named as accused numbers two through five. Unknown public servants and private individuals have also been included as accused.

The case has been registered under Sections 120-B, 406, 420, 468 and 471 of the Indian Penal Code; relevant sections of the Bharatiya Nyaya Sanhita (BNS); and Section 13(2) read with Section 13(1)(a) of the Prevention of Corruption Act, 1988, as amended in 2018.

How the Alleged Fraud Was Executed

According to the FIR, the company — incorporated in 2017 and engaged in manufacturing electronic resistance welded (ERW) galvanised pipes and steel products — approached Union Bank of India's Suryaraopeta Branch, Vijayawada in 2024 to take over its existing loan from Karur Vysya Bank. The directors allegedly submitted false financial statements and fabricated documents to secure the facility.

Based on these documents, the bank sanctioned fund-based and non-fund-based credit facilities aggregating to ₹24.98 crore on 22 February 2024. The borrowers reportedly offered stocks, book debts, plant and machinery as primary security, along with mortgage of immovable properties as collateral.

A subsequent unit inspection, however, allegedly uncovered a stark discrepancy: the borrower had declared stock worth ₹23.85 crore, while physically available stock was valued at only approximately ₹25 lakh — with no commensurate evidence of sales or turnover.

Red Flags: Shell Entities and Director Exits

The FIR states that two directors resigned within six months of the loan sanction without obtaining prior permission from the sanctioning authority, and subsequently floated a new company, M/s Nerro Steels Pvt Ltd, which carried a charge of ₹6.01 crore with Canara Bank.

Investigators also flagged suspicious transactions involving two firms — Maruthi Traders and Sri Durga Bhavani Steels — both established only in 2024 and found to be non-operational at the time of the bank's enquiry. According to the FIR, major credits amounting to ₹32.19 crore out of total credits of ₹67.54 crore were observed in the name of Sri Durga Bhavani Steels. These entities are believed to have been used for siphoning funds and artificially inflating turnover to enhance credit eligibility.

The FIR further noted routing of transactions through current accounts, unauthorised changes of directors and statutory auditors, and movement of stock from the unit without intimation to the bank.

Account Classified NPA, Dues Cross ₹26 Crore

The account was classified as a Non-Performing Asset (NPA) on 23 June 2025 due to non-servicing of interest. Outstanding dues, including accrued interest, stood at approximately ₹26.05 crore at the time of classification. The FIR puts the alleged wrongful loss to the bank at ₹24,81,47,000, with a corresponding wrongful gain to the accused.

The CBI's move is part of a broader pattern of enforcement action against bank fraud in Andhra Pradesh; investigators are now expected to examine financial records, audit trails, and the role of any bank insiders who may have facilitated the loan approval.