Central Bureau of Investigation (CBI) had booked a case against Srinivas Kalyan Rao, son of CBI's former director Vijaya Rama Rao, on Saturday.
Three banks had complained to the CBI that Srinivas had borrowed Rs. 304 crore from them, but failed to repay. Following a formal complaint, the premier investigating agency registered a case. Subsequently, raids were also conducted at properties owned by Srinivas in Chennai and Hyderabad.
What is not known to public is that Mr. Kalyan Rao is a close working partner of Union Minister, Mr. Y Sujana Chowdary and apparently seems to have learnt the craft of raising finances from Sujana.
Mr. Chowdary though is smart enough to ensure that his name doesn't appear in any of the companies directly or indirectly when he has such benami partners.
Sujana group has defaulted on more than 4000 Crores which is in the public domain wherein he is pursuing the newly laid out scheme by RBI called Strategic Debt Restructuring (SDR), as part of which a consortium of lenders converts a part of their loan in an ailing company into equity, with the consortium owning at least 51 per cent stake.
The SDR scheme provides banks significant relaxation from the RBI rules for 18 months. By making banks majority owners and replacing the existing management, the scheme gives lenders the powers to turnaround the ailing company, make it financially viable and recover their dues by selling the firm to a new promoter.
If banks are unable to sell to a new promoter within 18 months, then all regulatory relaxations cease to exist and lenders have to treat these assets as NPAs and make 100 per cent provisioning for these assets in majority of the cases. It's unfortunate that a common man gets hauled for missing a single EMI on their cars and homes but the bada netas travel in private jets even after defaulting on lakhs of crores...