(Under Section 173 BNSS)

1. Distrlct: Visha kha patna m PS: ACB Vishakhapatnam

Year: 2024
FIR No: RC0362024A002 1 Date: t0/09/2024
2. Acts &Sections:
Acts Sections B,/W Section
B
406
420
Act- 1988 t3(2) r/w 13(1Xd)
Act-1988 (As anrended in 2018) L3(2) r/w (r3)(1)(a)

3. Suspected offences: cririnal conspiracy,cheating,crininal Breach of rrust,crininal Misconduct

(a) Occurrence of offence:
Day: Time Period:
From Date: 20L7 To Date: 2018
(b) Information Received at pS:
Date:
(c) General Diary Reference:
Entry l{o.: 05
Date: 70/09/2024 Time 1 1:33:02

4. Type of Information: Written

5. Place of Occurtrence! State Bank of India SME Branch, Tirupati

(a) Direction &distance from PS: 75g KIvt (Apox.) South West.
Beat lto.:
(b) Address:
plotNo.: State Bank of India, SME,
Tirupati Area:
City: Tirupati pin:
State: Andhra pradesh District: Chittoor
(c) In case, outside the limit of this potice Station, then
Name of PS: Distract:

6. Complainant / Informant:
Complainant I
(a) Name: Mr, RVaradarajan
(b) Father's/Husband's Name: Rengachary
(c) Date,/Year of Bidh:
(d) Nationality: INDIAN
(e) Passport:
Passport No. Date Of Issue Place Of Issue
(f) Occupation: Deputy General Manager
(g) Address:
Plot No Areal City State District Pin
General Manager (B and O), State Bank of India, Tirupati
lrirupati Andhra Pradesh Chittoor

7 Details of known/suspected/unknown accused with full particula.s

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 I
Accused
Name: M/s. Sudalagunta Sugars Linlted(l)
Addrcss:
rep. by chaimlan & Managing Drector, s. Jayaram chowdary, office at No.209, Tp Area,
unit at B.N.lGndriga,
Srikalahasti, Tirupati, Chittoor, Andhra pradesh
Accused 2
ihme: Mr.Sudalagunta Jayaram Chowdary (2), Father/Husband name: S penchala Naidu
Address:
chainrun &Managing Director, M/s. sudalagunta sugars Ltd. D.No.19-3-zoc/L,lGkatiya Nagar,
Tirupati, chittoor,
Andhra Pradesh
Accused 3
Namer Mrs.sudalagunta praneela (3), Father/Husband name: s Jayaram chowdary
Address:
Director, M/s. sudalagunta Sugars Ltd. D.No.19-3-2oc/t, lGkatiya Nagar, Tirupati, chittoor,
Andhra pradesh
Accused 4
Namc: Mr.Sudalagunta Krishna lGlyan Kunur (4), Father/Husband name: S Jayaram Chowdary
Address:
urector, M/s. sudalagunta Sugars Ltd. D.No.19-3-2oc/t, Kalotiya Nagar, Tirupati, chittoor, Andhra pradesh
Accused 5
I{ame: Mr.Palukuru Masthan Reddy (5), Father/Husband name: p Ranuna Reddy
Address:
Independent Drector, D.No.3-9, Tiruchanoor, Tirupati, chittoor, Andhra pradesh
Accused 6
I{ame: Mr.sudalagunta veerappa Naidu (6), Father/Husband name: s penchal Naidu
Address:
Director, M/s. sudalagunta sugars Ltd. ,Eduru-1, T.P.qJdur, Nellore, sri potti srirarrulu Nellore, Andhra pradesh
Accused 7
Name: Mr.s.Ranunaiah Naidu (7), Father/Husband name: s penchal Naidu
Address:
D.No.19-3-20G/1, lGkatiya Nagar, Tirupati, Chittoor, Andhra pradesh
I
Accused
Itlamc: Mr.M' Gopar Midu (8), Father/Husband name: Ranunaiah Naidu
Addrcss:
Dlrcctor, M/s. Sudalagunta sugars Ltd. D.No.19-3-2oG/L, Kakatiya Nagar,, Tirupati, chittoor, Andhra pradesh
Accused 9
I{ame: M/s. Sudalagunta Hotels Ltd.(g)
Addrcss:
No.209, T,P.Area, Tirupati, Chittoor, Andhra pradesh
Accused 1O
l{ame: M/s. Sudalagunta Agro Mills Ltd.(10)
Address:
No.209, T,P.Area, Tirupati, Chittoor, Andhra pradesh
Accused 11
Name: Unknown Public Servant(s) & private person(s)
Addrcss:

8. Reasons for delay in reporting by the complainant/informant:

9. Particulars of properties stolen:

Item Name Age of Property Estimated Value (in INR)

1O. Total value of property stolen:

11. Inquest Report/U.D. Case No., ifany

2of16
12. First information contentsi
A written complaint dated 20.03.2024 has been received from shri. R. Varadarajan, Deputy
General Manager (B&O), State Bank of lndia, Adminiskative Office, Renigunta ioaA,
firupaii,
Andhra Pradesh against 1) M/s sudalagunta Sugars Ltd. represente-d by its cMEhri
Sudalagurrta Jayaram Ctrcwdary office at No.209, TF Area, Unit at B.N.Kandrrga,
Srikalahasti,
Tirupati, 2) Shri sudalagunta chowdary, chairman & Managing Direltor (cMD), 3)
-Jayaram4) shri sudalagunta
Smt. Sudalagunta Prarreela, Director, Krishna Ka-ya-n t<umar, rjirectoi, sj
shri Palukuru Masthan Reddy, lndependent Direitor, 6) shri Sudalagunta Veerappa
Naidu, Director 7) shri s. Ramanaiah Naidu, g shri M. bopal Naidu, -oirector,sy
n,lis
s.udalagunta Hotels Ltd- registered office at #209, TpArea, Tirupaii, 10) M/s sudalagunta
Agro
Mills Ltd. registered office at #209, TP Area, Tirupati and other unknown puuic ServantJ
&
Private Persors for the offences criminal conspiracy, cheating, criminal breach of trust
and
criminal misconduct.

It is alleged in the said complaint that Borrower company M/s sudalagunta Sugars Ltd.,
represented by its CMD Shri Sudalagunta Jayaram Chowdary and othel Directors availed
various credit facilities under consortium and multiple Banking ariangement with State Bank
of
lndia (sBl), Andhra Bank (presenfly Union Bank of lndia), llrsnmivltas Bank (presently DBS
Bank Ltd.), Indian Bank, United Bank of lndia (presenfly punjab National eank) and Bank
of
lndia.

At the request of the company, the State Bank of lndia, SME Brarrch, Tirupati had sanctioned
credit facilities viz cash credit & term loans, total amounting to Rs. 39.60 crores. As per the
terms and conditions of sanction letter, the company executed relevant documents in far,rnur of
the Bank.
The company hypothecated its assets, stocks, receivables, goods, etc. with sME, sBl and
other consortium Bank members- as primary security. Further, Shri S. Jayaram clrcwdary, shri
S. Veerappa Naidu and shri s. Ramanaiah Naidu stood as p"r.o*i guarantors and Mis.
sudalagunta Hotels Ltd. and sudalagunta Agro Mills Ltd. are s-ho*n u. corporate
-M/s,
Guarantors to secure the credit facilities sanctioned tothe company.
Further they also offered Equitable Mortgage (EM) of vacant site belonging to M/s.
Sudalangunta Hotels Ltd. to the extent of l.1g Acres situated at survey No.10/21,'2& ward,
near Subhash Nagar, Karakambadi, Tirupathi and other properties as iollateral Security.
The
above mentioned property is in dispute between Revenue auttrorities and the company. The
company loan accounts were renewed and relevant loan documents were executed on
20.03.2018.
Subsequently, the company did rnt pay any amounts towards the installments and the account
became irregular. The company also did rrct allow the branch officials/irspector to conduct the
stock verification and the company also did not provide any stock statement. The company
failed to submit stock statement from June, 2018 and Molated the agreed terrns and conditions
of the sanction letter. During multiple visits by the Bank officials/ inspjctors, the company did
rrct
show the stocks in the godown.
Further, the borrowers sold the stocks as well as materials and the proceeds were diverted,
which were later misappropriated, without the knolwedge of the Bank. No intimation thror4h
stock statenent abor.rt ttre sales or receivable was given io the Bank. ntso, comfiny corrceateo
real inforrnation to the bank to avail higter drawing power and thereby induced tL bank
to give
more fund and cleated the bank. The Account was declared as NpA on 2g.11.201g and
declared as fraud on23.o2.2023. As on 31.01.2024, total amount of Rs.23,14,39,989/- is
still
or.rtstanding.

As the complaint prima-facie discloses commission of offences punishable Under Sec. .120-8,
pCAct, 1988andSec..t3(2)rtw 13(1)(a)of pC
109,1?9-l?9andsec. 13(2)rtw 13(1Xd)of
Act, 1988 (As amended in 2018), a Regular case is registered agairsi .l.M/s'sioilagunta
3of16
 sugars Ltd. rep. by its cMD; 2.shri sudalagunta Jayaram chowdary chairman
& Managirg
Director' M/s Sudalagunta_ Sugars Ltd; 3. Smt. Sudalagunta piameeta
Director, M/s
Sudalagunta Stgars Ltd.; 4. Shri Sudalagunta Krishna Kalyan (umar,
Director, M/s Sudatagunta
sugars Ltd.; 5. shri Palukuru Mastnn R9ddy, lndependent Director; 6.shri
suoatag'unta
Veerapa Naidu, Director, M/s Sudalagunta Sugirs Ltd.; 7.Shri Ramanaiah
Naidu;g.Shri M.
Gopal Naidu, Director, M/s Stdalagunta Suga[ Ltd.; 9.n4ls SuOalaguni,
Hot"l, Ltd.; 10.M/s
S{lalaguntaAgro Mills Ltd. and 11- Lhknown public Servants and private persons.
Herce, the
FlR. The complaint in original is enclosed herewith and the same rnay
be treated as part and
parcel of the FlR.

Encl: Original complaint dated 20.03.2024 received from Shri R. Varadarajan,

Deputy General
Manager (B&O), State Bank of lndia, Administrative Office, Renigunta Road,
Tirupaii.
'
13' Action taken : since the above information reveals commission of ofience(s)
u/s as mentioned at rtem No.2:
(l) Registered the case and took up the investigation: yes
OR
(2) Directed
]Iame of IO: REYYI SoMESWAM RAo
Ranlc INSPECTOR (ACB Vishakhapatnam)
No: LB37L?
to take the investigation
OR
(3) Retused investigation due to:
OR
(4) Transfered To PS: District:
on point of jurisdiction.

Attached documents:
Document name
Complaint

FrRread overto the complainant/informant, admatted to be corrcctly recorded and

a copy given to the comptainant
/ informant, fiee of cost.
RO.A.C.

1a Signaturer/Thumb Impression of
u, .lrY
-" the complainant/informant of Officer /
in-charge police Station
Irhme: Murali Ranbha -1
_ Rank sylD]. oF PoLTCE (ACB !

supeanbnu€fl tEf p0WI

noa :
C.B.l., AC.B., Visakhapaharu
15. Date and time of dispatch to the Court:

€o*^1ru b 1Lr4 tlon'bQ coutt o4

<Pl,;ruAgL .!n CAt &4ug, K,."vnoal'
'*Y.
Superhbnrbrm C noffoe E HoB
C. B.1., AC.E, \llnklrepqtram.

a
4of16
 lo
ztz- z@t V fuI^*,
CB?/ h-e w',tu /-{nfrra,n

1 Name of the Bank State Bank of lndia

2 Name and full address of SME Branch Tirupati (16292),
the branch. New Balaji Colony, Tirupati
Tirupati District, Andhra Pradesh-5
17 501
3 Date of lodging of
2o.o9.2D2+
complaint
4 Date of declaration of 23.02.2023
accounts as Fraud by FIC
of the Bank
5 Time, Date & Place of occurrence of fraud : 28.11.2018 (Date of NPA)
6 Name of the Complainant: Sri R. Varadarajan, S/O Rengachary,
Deputy General lt/anager (B &O),
2nd Floor, Sahaja Towers, Tirupati, PIN 517501,
7 BRIEF PARTIGULARS OF FRAUD:

1. M/s Sudalagunta Sugars Ltd, represented by its Chairman & tt/anaging

Director Shri S.Jayaram Chowdary, Directors Smt. S.Prameela, Shri
S.Krishna Kalyan Kumar, Shri S.Veerappa Naidu, and lndependent
Director Shri P.Masthan Reddy, bearing
CIN
No.U15424AP1994P1C018279 having its registered office at No.209, TP
Area, Tirupati-S17501 and Factory/Unit at Mayura Nagar, B.N. Kandriga,
Srikalahasti, Tirupati District (Erstwhile Chittoor District).
2. The Company availed various credit facilities under Consortium and
Itlultiple Banking Arrangement with State Bank of lndia, Andhra Bank
(presently Union Bank of lndia), Lakshimi Vilas Bank (presently DBS Bank
Ltd), lndian Bank, United Bank of lndia (presently Punjab National Bank) and
Bank of lndia.
3. At the request of the company, the State Bank of lndia, SME Branch,
Tirupathi had sanctioned credit facilities. As per the terms and conditions of
the sanction letter, the company executed relevant documents in favour
of the Bank. The company hypothecated its assets, stocks, receivables,
goods, etc. with our bank and other consortium bank members. The
company agreed to provide the Statement of Stock/Receivables regularly
every month signed by the Authorized Signatory. The company agreed to
regular inspections by the bank officials/inspectors as and when required to
inspect the stocl</books/equipment including half-yearly audits. Further Shri
S.Jayaram Chowdary, Shri S.Veerapa Naidu and Shri S.Ramanaiah Naidu
gave personal guarantee and M/s Sudalagunta Hotels Ltd. and M/s
Sudalagunta Agro Mills Ltd gave Corporate Guarantee to secure the credit
facilities sanctioned to the company.
4. The Company loan accounts were lastly renewed and relevant loan documents

05 4tL
executed on 20.03 .2018. The details of the credit facilities availed by the Company
under Consortium and Multiple Banking Arrangement are furnished hereunder : (As
on 28.11.2018 - date of NPA)
(Amount in Crores)
Exposure to the Unit Exposure to the Group
Bank's share Total Bank's Tota!
%l (MBA/Cons) share (%) (MBA/Cons)
Cash Credit 32.02 65.60 39.42 73.66
Term Loan 10.33 123.48 10.33 123.48
Others 100.00 0.94 100.00 0.94
(wHR)
Total FB 190.02 198.08
BG 0.00 0.00 0.00 0.00
LC 0.00 0.00 0.00 3.00#
CEL 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00
(Pls specify)
Total NFB 0.00 0.00 0.00 3.00
Total 190.02 100.00 201.08
(FB + NFB)
#LC sanctioned to Sudalagunta AgroMills Ltd., Rs.1.50 Cr; Sudalagunta
Flour Mill Ltd.,Rs.1.50 Cr (As on date no LC limits availed by the Units)

The Brief details of Company's total exposure under consortium

S.No Bank Name Facility Limit O/s o/o
ol
Share
(in (in
crores) crores)
1 DBS Bank (e-LVB) occ 11.84 20.26 18.94

2 UBI (e-Andhra OCC 10.00 13.40 16.00

Bank)

3 lndian Bank occ 19.62 19.64 31.39

4 SBI CC 21.04 23.14 36.67

Total 62.s0 76.44

6. Subsequently, the company did not pay any amounts towards the
installments and the account became irregular. The company also did not
allow the Branch Officials/inspectors to conduct the stock verification and the
company also did not provide any stock statement. The company failed to
5

66 od rL
 submit stock statement from June, 201 8 and violated the agreed terms and
conditions of the sanction letter. During multiple visits by the Bank
officia ls/inspectors, the company did not show the stocks in the Godown and
informed the officials that the unit was under maintenance and that the
Godown keeper was not available. Despite regular meetings held for
submission of stock statement, the company did not submit the stock
statement. The Company did not pay the dues to the bank and the accounts
turned into NPA.

7. Further the stock and other materials were also sold and the proceeds were
diverted and the amounts were misappropriated, No intimation through stock
statement about the sales or receivables were given to our bank. The
removal of the stock was also not intimated to the bank. No auditing of the
stocks were allowed. Also the company concealed real information from the
bank to avail higher drawing power and thereby induced the bank to give
more funds and cheated the bank. The company deliberately and with clear
intention to cheat and defraud the bank conspired and resorted to criminal
acts and induced the bank to give more finance, played mischief and
breached the trust and misappropriated amounts and diverted funds. The
criminal acts were done with full knowledge and understanding of the
repercussions of the same. The Directors and guarantors had complete
knowledge of the illegal activities of the company and all the directors and
guarantors related to each other.

8. The company and its guarantors had prior intention to cheat and resorted to
all illegal activities as mentioned above in furtherance of their common
intention to cheat and misappropriate funds from our bank and other
consortium member banks. The alleged offences took place at the factory
uniUGodowns' at B.N. Kandriga and Registered office of the company at
Tirupati. The Total amount involved in the above criminal acts of the
company is Rs.30.15 Crores approximately.

9. Leqal action taken

(a) As the account was classified as NPA, the account was transferred to
Stressed Assets Management Branch-ll, Hyderabad.
(b) SARFAESI action: Present Status: Two out of three properties exclusively
mortgaged to us were sold for Rs. 10.1 9 crores under e-auction held on
06.05.2021. Total amount received and two term loans closed on
12.09.2022. Balance amount credited to third term loan. As per High Court
directions company paid Rs.1 1 .00 crores credited to term loan account in
July 2024. The details of the properties sold are as below
Address of ro erties Date of Sold Amount tn

6
3.8.1

o'1 o+t,( n
rtcE
Y

Rs.)
Factory Land & Bldg. of 06,05.2021 8,84,00,00.00
Sudalagunta Agro Mills Ltd.
(corporate Guarantor) D. No. 9-
11011 (Survey No. 9215,9216,93/1)
Settipalli Road, Daminedu Village,
Tirupati Panchayat, Renigunta Sale
Deed No. 126211998 dated
27 .02.1997.
Non-Agri Land of 3.20 acres at 06.05.2024 1,35,00,000.00
Survey No. 550, IVlittapalem Village,
in the name of [Mr. S.
Ramachandaiah Naidu vide Regd.
Doc. No. 51711992

(c) Suit filed Status: Joint Suit along with consortium Banks filed vide O.A.
No.72012019 for Rs.85.92 Crores on 16.11.2019 in DRT Hyderabad. The
proceedings are under process and the next hearing is scheduled on
25.03.2024 for respondent reply.

10.The detailed addresses of the persons who are involved in all the above
mentioned illegal activities are mentioned below:

M/s Sudalagunta Sugars Ltd. registered office at #209, TP Area,

Tirupati-S17501, Tirupati District, unit at B.N. Kandriga, Srikalahasti,
Tirupati District.
ii. S. Jayaram Chowdary S/o S. Penchala Naidu, Chairman & Managing
Director, M/s Sudalagunta Sugars Ltd, bearing PAN No.AFTPC3827P
DIN no 00014900, residing at D.No.19-3-20G/1, Kakatiya Nagar,
Tirupati, Tirupati District. Ph.No.9948363672
iii S. Prameela Wo S. Jayaram Chowdary, Director, M/s Sudalagunta
Sugars Ltd, bearing PAN No.AElrIPS1853H and DIN No 00014930
residing at D.No.19-3-20G/1, Kakatiya Nagar, Tirupati, Tirupati District.
iv S. Krishna Kalyan Kumar S/o S. Jayaram Chowdary, Director, M/s
Sudalagunta Sugars Ltd, bearing PAN No.APNPK4646Q and DIN
NoO1371809, residing at D.No.19-3-20G11, Kakatiya Nagar, Tirupati,
Tirupati District.
V M. Gopal Naidu S/o Ramanaiah Naidu, Director, M/s Sudalagunta
Sugars Ltd, bearing PAN No.BAQPIU1983H, residing at D.No.19-3-
20Gl 1, Kakatiya Nagar, Tirupati, Tirupati District. Ph. No. 877227 567 5.
vi P. Masthan Reddy S/o P. Ramana Reddy, lndependent Director,
bearing PAN No.AFUPP7371J, residing at D.No.3-9, Tiruchanoor,
Tiru ati District. Ph. No.99 59251727
7

o( afrt
 vii. S. Veerapa Naidu S/o S. Pe nchal N aidu, having DIN No.00014925
residing at Eeduru-1 , T.P. Gudur, Nellore-S2 4911 .

viii. S. Ramanaiah Naidu S/o S. Penchal Naidu, bearing pAN

No.AATPN3433H, residing at D.No.1g-3-Z0Gl1, Kakatiya Nagar,
Tirupati, Tirupati District.
ix. M/s Sudalagunta Hotels Ltd. registered office at#20g, Tp Area, Tirupati-
517 501,Tirupati District. (C I N-U55 1 0 1 AP 1 982P1C00 37 22)
x. M/s sudalagunta Agro Mills Ltd. registered office at #20g, Tp Area,
Tirupati-S17501, Tirupati District, unit at No.2A, Renigunta Road,
Settipalli, Tirupati-S1 7506. (ClN- U01 1 12AP2A0ZPLC0S568S).

10. Out of the four consortium members, DBS Bank lndia Ltd (erstwhile
Lakshmi Vilas Bank) has declared the account as fraud on 21.01.2019. Union
Bank of lndia (erstwhile Andhra Bank) has also declared the
account as
fraud on22.07.2021. lndian Bank is yet to take a decision on the account.
Our bank declared the accounts as fraud on 23.02.2023.

11. ln this regard, I request you to immediately investigate the matter and further
to register case for Criminal conspiracy, Criminal breach of trust, cheating,
fraudulent removal of stocks, Diversion of funds, Misappropriation of funds,
against the above said persons and all others involved in this crime in all the
relevant sections of law as per the law of the land and to recover the amount
illegally diverted and to punish the guilty and to bring justice othenryise the
bank would sustain huge monetary loss.

12. Key Directors / Promoters of the Company are:

Sl No Name Designation

1 Sudalagunta Jayaram Chowdary Whole time Director

2 Sudalagunta Krishna Kalyan Kumar Managing Director

3 Sudalagunta Prameela Director

4 Sudalagunta Veerapa Naidu Director

5 Palukuru Masthan Reddy Additional Director

13. The details of accounts as under;

Facility Limit in Outstanding as on Outstanding as Recovery

Crores NPA date on 31 .01.2024 (Rs in
28.11.2018 in Rs in Rs. Crores)
Cash Credit 21.04 1 t t 21,14,78,123.00
8

o1 o( ru
 TL-1tuc 1.08
No.33879377870 4.16 71 ,13,699.00 0.00 (Closed on
12.09.22)
TL-2 Nc
11.00 9,00,32,099.00 1,99,61,966.00 15.66
No.35201539320
TL-3 A/c 4.80
No.35257151935 3.40 2,75,38,293.00 0.00 (Closed on
12.09.22)
TOTAL 39.60 33,84,90,839.00 23,14,39,999.00 21.54

14. As detailed above, the Company has resorted to

a Diversion of funds
a Utilization of facilities to other than purpose for which they were provided and
submission of concealed information to Banks to avail higher drawing power.
The Company has not cooperated in completing Stock and Receivable Audit
and not allowed access to the stocks hypothecated on flimsy grounds.
The Company has sold away the stocks and recovered receivables but has
not repaid the finance provided by the members of consortium against the
hypothecation of the same.
ln order to avoid repayment of working capital facilities, Company has
stopped paying the interest and instalment of the working capital loans
intentionally and rendered the accounts become NPA.

8 Names of the accused persons:

S.No Name Occupation Address
1 Sri S, Jayaram Chowdary, Business D.No.19-3-20G/1 ,

Chairman & Managing Kakatiya Nagar,

Director Tirupati.

2 Smt. S. Prameela, Director Business D.No.19-3-20G/1 ,

Kakatiya Nagar,
Tirupati.

3 Sri S. Krishna Kalyan Business D.No.19-3-20G/1 ,

Kumar, Director Kakatiya Nagar,

Tirupati.
4 Sri P. Masthan Reddy, Business D. No.3-9, Tiruchanoor,
lndependent Director Tirupati District.
5 Sri S Veerappa Naidu , Business Eeduru-1, T.P. Gudur,
Director Nellore-524311.
6 Sri M.Gopal Naidu, Business D.No.19-3-20 G/1,

b a(t$
 S/o.Ramanaiah Naidu, Kakatiya Nagar,
Director Tirupati
7 Sri S.Ramanaiah Naidu, Business D.No.19-3-20 c/1,
S/o.Penchal Naidu Kakatiya Nagar,
Tirupati
8 M/s.Sudalagunta Hotels Business #209, TP Area,
Ltd., Tirupati-517501
I M/s. Sudalagunta Agro ttlills Business #209, TP Area,
Ltd., Tirupati-517501
10 M/s.Sudalagunta Sugars Business #209, TP Area,
Ltd., Tirupati-S17501
i. M/s Sudalagunta Sugars Ltd. registered office at#209,
I Role of accused TP Area, Tirupati-S17501, Tirupati District, unit at B.N.
persons including Kandriga, Srikalahasti, Tirupati District.
the role of public ii. S. Jayaram Chowdary S/o S. Penchala Naidu,
servants. Chairman & Managing Director, M/s Sudalagunta
Sugars Ltd, bearing PAN No.AFTPC31?7P DIN no
00014900, residing at D.No.19-3-20G/1, Kakatiya
Nagar, Tirupati, Tirupati District. Ph.No.9948363672
iii.S. Prameela Wo S. Jayaram Chowdary, Director, M/s
Sudalagunta Sugars Ltd, bearing PAN
No.AEI\IPS1853H and DIN No 00014930, residing at
D.No.19-3-20G11, Kakatiya Nagar, Tirupati, Tirupati
District.
iv. S. Krishna Kalyan Kumar S/o S. Jayaram Chowdary,
Director, M/s Sudalagunta Sugars Ltd, bearing PAN
No.APNPK4646Q and DIN No01371809, residing at
D,No.19-3-20G11, Kakatiya Nagar, Tirupati, Tirupati
District.
v. M. Gopal Naidu S/o Ramanaiah Naidu, Director, M/s
Sudalagunta Sugars Ltd, bearing PAN
No.BAQPM1983H, residing at D.No.19-3-20G11,
Kakatiya Nagar, Tirupati, Tirupati District.
Ph,No.8772275675.
vi. P. Masthan Reddy S/o P. Ramana Reddy, lndependent
Director, bearing PAN No.AFUPP7371J, residing at
D.No.3-9, Tiruchanoor, Tirupati District.
Ph,No,9959251727 .
vii.S. Veerapa Naidu S/o S. Penchal Naidu, having DIN
No.00014925 residing at Eeduru-1, T.P. Gudur, Nellore-
524311.
viii. S. Ramanaiah Naidu S/o S. Penchal Naidu, bearing
10
;i.8. i i
n
rt +tL "t
o.

'rrC
E
 PAN No.AATPN3433H, residing at D.No.19-3-20Gt1,
Kakatiya Nagar, Tirupati, Tirupati District.
ix. M/s Sudalagunta Hotels Ltd. registered office at #209,
TP Area, Tirupati-S17501,Tirupati District.(ClN-
u55 1 01 AP1 982P1C003722 )
x. ltl/s Sudalagunta Agro Mills Ltd. registered office at
#209, TP Area, Tirupati-S17501, Tirupati District, unit at
No.2A, Renigunta Road, Settipalli, Tirupati-S17506.
(cr N- u01 1 12AP2007P1C055685).
xi. Other unknown public servants.

10 Grave irregularities Nit

committed by
public servants.
11 Role of common Not applicable
conspirator
12 The names and addresses of prosecution witnesses :

1. Sri B S Pandian, Asst General Manager, PFSBU, State Bank of lndia, Fort, Mumbai-
400001.
2. Sri T V Krishna Murthy, Manager, ABU&GSS Dept, State Bank of lndia, Local Head
Office (Amaravati), Gun Foundry, Hyderabad-500001
3. Sri Y K Chaitanya, Dy Manager, RBO-1, State Bank of lndia, Administrative Office,
Renigunta Road, Tirupati-S1 7501
13 Action taken by the Disciplinary Proceedings were initiated against the dealing
bank against public officials and appropriate action has been taken.
servants including
departmental
proceedings
initiated.
lf so, details
thereof.
14 Whether Yes.
investigation Fraud Angle lnvestigation has been conducted by Sri Kamal
conducted by the Kumar, DGM, LHO, Amaravati Circle and the official has
Bank. lf yes details submitted his report on 29.09.2021 .

of the major
findings, Maior Findinqs:

The Report has found that the Company has resorted to

a) Diversion of funds
b) Utilization of facilities to other than purpose for which
they were provided and submission of concealed
11

tL* IL
 information to Banks to avail higher drawing power,
c) The Company has not cooperated in completing Stock
and Receivable Audit and not allowed access to the
stocks hypothecated on flimsy grounds.
d) The Company has sold away the stocks and recovered
receivables but has not repaid the finance provided by
the members of consortium against the hypothecation
of the same.
e) ln order to avoid repayment of working capital facilities,
Company has stopped paying the interest and
instalment of the working capital loans intentionally and
rendered the accounts become NPA.
15 Availability of The original loan document, title deeds and other related
original documents are available at SAM-Il Branch, State Bank of
documents lndia, Hyderabad (1 8359).
'16 Whether accused No
persons were
in
involved any
other fraud in the
bank on an earlier
occasion.
17 Whether the fraud
has lnterstate, -No-
lnternational
ramification. lf yes,
give the details.
18 Whether Yes
registration is
authorized by CVO
ofthe Bank.
19 Signature of the
complainant with
seal and date.
Deputy Ge anager (B &o)
State Bank of lndia,
Ad m in istrative Office,
TIRUPATI.
Date: 20.03.2024

72

13 0(E
 ANNEXURE .I

Facility Limit Outstanding as Outstanding as on Recovery

in Cr on NPA date 31.01 .2024 in Rs.
(Rs in Cr)
28.11.2018 in

Rs

cc- 21.04 21,38,06,778.00 21,14,78,123.00 0.00

1 03067691 57

TL- 11 .54***
4.12
35201 539320
(on
(remaining
account
11.00 9,00,32,089.00 1,99,61,866.00 balance
of court
on sale of
order
two
properties borrower
paid )

TL-
4.16 71 ,13,689.00 0.00 1.08.
33879377870

TL-
3.40 2,75,38,283.00 0.00 4.80**
35257 151 935

SARFAESI
and Other 0.19
Expenses

TOTAL 51.04 33,84,90,839.00 23,14,39,989.00 21.73

*Amount Rs1.08 cr includes interest amount of Rs 0.48 cr along with O/s of Rs 0.60 cr
** Amount of RS 4.80 cr includes interest amount of Rs 2.75 cr along with interest amount of Rs 2.05
cr.
*** Amount of Rs 4.12 cr credited (remaining balance on sale of two properties) and Rs 11.54 cr
received from company credited in July 2024.

13

Ityof tt
 Particulars of Securitv Offered.
ANNEXURE .II
SI Market Date of Whether Remarks
Details Realizable
N Value valuation enforcea
value
o ble
The property
EM of vacant site belonging is in dispute
Nit Nit Nir Nit
M/s, Sudalagunta Hotels
between
Ltd, to the extent of 1.18 Revenue
acres situated at survey no.
authorities
1012E, 28th ward, near
and the
1
subhash nagar,
company.
Karakambadi Tirupathi.
Hence the
Value Rs.0.00 (Valuation N
value was
Srinivasa Raju on
considered
14.09.2019)
as zero,
EM of factory and building
there on situated at Survey
no 92/5, 9213,9311 Tirupathi
Settipalli Road, Daminedu
Village under Tiruchanoor
Panchayat, Renigunta
2 Mandal, Chittor Dist Rs 9.00
Rs 8.00 cr 05.08.2017 Yes
(presently Tirupathi Dist) cr
belonging Sudalagunta agro
mills limits. Valued at
Rs.8.00 Cr (L&B) Rs, .0.43
(P&tU) valuation report dated
05.08.201 7 and 30.03.201 9.
Pari Passu first charge on
the Fixed Assets of the
Company along with other
Banks in Working Capital
Consortium (first charge with
State Bank of lndia, lndian 29.25 cr 29.25 cr 31.03,2017 Yes
3
bank, Andhra Bank (Union
Bank of lndia) for their (ABS)
respective Term Loan) and
Second charge with Bank of
lndia for their Corporate
Term Laon of Rs.26.55 Crs,
L4

19 oltt
 Pari passu first charge on
Plant and l\Iachinery (FMV /
RV / charged value = Rs
58.19 /49.06 /16.05 Crs)

First charge on factory at

Mayura Nagar, Katur Post,
Srikalahasti (UNIT 1)
FMV/RV/charged value = Rs
47 .86140.681 13.25 Crores).

Total share of Rs.29.25

Crores.
ln addition to the above, EM Rs 1.44 Rs 1.30 cr 21.03.2019 Yes
of non-agriculture land cr
situated at Survey No. 547
Mitta palem, Chandragiri
Mandal, Chittoor Dist
admeasuring 2.35 acres in
the name of Sri S Jayaram
Chowdhury vide register
document no. 124711992
and 124911992 with value
Rs.1.33 Crore and
Valudation report dated
28.07.2020 by Valuer Sri
4 Srivivasulu Reddy.

Ett/ of Non Agriculture land

situated at survey no 550
Mittapalem Vil, Chandragiri
Mandal, Chittoor Dist., Rs 1.04 Rs 0.94 cr 21.03.2019 Yes
admeasuring 3.20 acres in cr
the name of Sri S
Ramanaiah Naidu vide Reg.
Document No.
51711192(Valued at Rs.0.45
Crores and valuation report
dated 07.08.2020 by valuer
Sri Srivasulu Reddy.

15

It ef r6