Bengaluru: In response to a bank fraud involving a total of Rs 23.73 Crore, the Enforcement Directorate (ED) on Monday November 7 filed a chargesheet against AGS Infotech Private Limited and its Director G. Dhananjaya Reddy before the Principal City Civil and Session Judge Special Court in the City. The prosecution complaint filed by the ED has been approved by the court.
The Director of AGS Infotech Ltd., Bengaluru, and others were charged with defrauding the United Bank of India in 2012 to the tune of Rs. 23.73 Crore in connection with the sanctioning and use of credit facilities in the name of AGS Infotech Ltd., stated the criminal case filed by the CBI’s Bank Securities & Fraud Cell, Bengaluru.
Investigations indicated that Reddy and the other accused defrauded United Bank of India, obtained a loan of Rs. 23.73 Crore by creating collateral security, and then used the loan proceeds for purposes other than those for which they were sanctioned.
Reddy is a habitual offender, and the ED accuses him of being the brain behind two other bank frauds carried out through two of his other companies, Nexxoft Infotel Ltd. and Ignis Technology Solutions Pvt. Ltd.
Reddy was earlier arrested by the ED in connection with a money laundering case involving Rs. 7.58 Crore, and a separate PMLA, 2002 prosecution by the central agency was filed against him.
