The Economic Offences Wing of Cyberabad recently made an arrest in a case involving fraudulent activities by AFS Constructions Pvt Ltd. One of the Directors, Mohammed Faiz Ahmed, was apprehended for obtaining a working capital loan of Rs 1.30 crore from the Balanagar branch of Canara Bank. The accused, along with another Director named Mohammed Chand Pasha, operated a construction company in Ramanthapur.
According to the investigation, Ahmed and Pasha secured the loan by submitting forged documents, claiming that they were employed to work on the electrical and pipeline project at Khammam municipality under Mission Bhagiratha. They presented false evidence of progress in the installation of water supply to the municipality. However, in 2022, the company defaulted on the loans, causing significant losses to the government exchequer.
The police suspect that the accused may have colluded with an ex-chief manager to carry out their fraudulent activities. In connection with this, the ex-manager, G Srinivasa Babu, was arrested a few days ago and has been remanded.
The fraud came to light when a new Assistant General Manager was transferred to the bank branch in 2022. The case was initially registered at Hyderabad’s CCS police station and later transferred to Cyberabad’s Economic Offences Wing for further investigation.
While Mohammed Faiz Ahmed has been produced before the court for remand, his business partner Mohammed Chand Pasha is currently absconding. The police are actively searching for Pasha to bring him to justice.