ED arrests promoter in Rs 402 crore bank loan fraud

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mso-bidi-language:GU'>New Delhi: The promoter and managing director of a Hyderabad-based company have been arrested in connection with a Rs 302 crore bank loan fraud case. He is accused of fraud with a consortium of public sector banks , the ED said on Tuesday.

mso-bidi-language:GU'>Avasarla Venkateswara Rao, promoter of Servomax India Pvt Ltd (SIPL), was arrested on Monday. He was produced before a special court handling cases under the Prevention of Money Laundering Act (PMLA). The court remanded him in judicial custody for 14 days.

mso-bidi-language:GU'>The ED said in a statement that Rao was arrested for money laundering and his various fraudulent activities as a consortium of public sector banks incurred a loss of Rs 402 crore and was involved in money laundering activities "Shruti","sans-serif"'>.

mso-bidi-language:GU'>The ED said SIPL had taken loans from a consortium of banks and Rao was in a promoter-cum-key managerial position , responsible for the entire business operation.