Nandyal MP’s home raided for Rs 500 crore loan default

TIRUPATI: Sleuths from the Central Bureau of Investigation (CBI) conducted raids on the residence of Nandyal lawmaker, SPY Reddy, for defaulting on Rs 500 crore bank loans availed by his firm in Andhra Pradesh’s Kurnool district. The raids, which began on Saturday morning, continued till late in the night as the central agency kept the raid under wraps.
SPY Reddy, who was elected on a YSR Congress party ticket, had switched sides to TDP, but joined Jana Sena before the general elections.
He is the founder-chairman of Nandi group of companies with diversified businesses in PVC pipes, cement, infrastructure, agro products and dairy industries. The group had availed the Rs 500 crore loan from various banks, including the State Bank of India (SBI), but allegedly defaulted on loan repayments. This resulted in the CBI raiding Reddy’s residence in Nandyal. Some key documents were seized by the CBI, sources said.
During the election campaign phase, Reddy was admitted to a private hospital in Hyderabad due to age-related multiple health ailments. He hardly managed to campaign in the polls.
CBI was armed with court orders
Even as CBI was conducting searches at his residence on Saturday, Reddy was under treatment at a private hospital in Hyderabad. S Sridhar Reddy, the MP’s son-in-law and managing director of Nandi group, was present at the residence during the raids.
Though the AP government had banned CBI from operating within the state without prior approval, the CBI conducted the raids armed with the court orders.
Sridhar Reddy said CBI officials from Bengaluru circle conducted search operations at their premises on Saturday and seized ?14,000 in cash and 400 grams of jewellery.
“The searches were carried out based on a complaint lodged against us by Syndicate Bank over a loan guarantee extended to one of the group companies. Despite our assets present as collateral security with the bank, the manager flagged our corporate account for a probe which led to the searches,” he said.