Loan Fraud Web Unraveled: ED Initiates Action Against Saisree Engineers for Defrauding SBI of ₹7.51 Crore
(Syed Ali Taher Abedi)
Hyderabad, August 1, 2025: In a significant move in the ongoing crackdown on financial crimes, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has filed a Prosecution Complaint (PC) before the Hon’ble Special Court for CBI Cases in Hyderabad against M/s Saisree Engineers Pvt. Ltd. (SEPL) and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The Court took cognizance of the complaint on July 28, 2025.
The case stems from a First Information Report (FIR) initially registered by the Central Bureau of Investigation’s Economic Offences Wing (CBI EOW), Chennai. The FIR was filed against M/s Saisree Engineers Pvt. Ltd., its founder and Managing Director Sagiraju Suryanarayana Raju, bank officials, unidentified public servants, and others, on allegations of defrauding the State Bank of India (SBI).
According to the FIR and subsequent charge sheet submitted by the CBI before the XXI Additional Chief Metropolitan Magistrate, Nampally, Hyderabad, the company had availed credit facilities from SBI by presenting forged and fabricated documents. These documents included fictitious property ownership details and misleading collateral papers, aimed at deceiving the bank and inflating their eligibility for loans.
The ED’s independent investigation has since confirmed that SEPL caused a loss of approximately ₹7.51 crore to SBI. The probe revealed that the loan funds were routed through multiple layers of transactions across several bank accounts in a deliberate attempt to conceal the origins and actual use of the money—a classic method of money laundering. A portion of these funds was withdrawn in cash and allegedly diverted for the personal benefit of the company’s directors.
A notable finding during the ED’s inquiry was the receipt of ₹13.53 crore by SEPL from Bharat Coking Coal Ltd. Instead of crediting this amount towards their outstanding loan account with SBI, SEPL deposited the funds in its current account held with Andhra Bank. The money, which could have mitigated the loss to SBI, was instead funneled into a series of suspicious transactions.
The funds were reportedly diverted towards personal bank accounts of Sagiraju Suryanarayana Raju, transferred to employee accounts, used to repay unrelated loans, and withdrawn in cash—all amounting to further laundering of the proceeds of crime.
Earlier, the ED had provisionally attached three immovable properties worth ₹3.11 crore belonging to Sagiraju Suryanarayana Raju as part of the investigation. The assets are believed to be directly linked to the fraudulent gains amassed through the scam.
The ED confirmed that further investigation into the money trail and involvement of other potential beneficiaries is currently underway.
This case marks yet another major step in the government’s effort to tighten the noose around corporate entities misusing public funds and abusing banking channels for personal enrichment.