New Delhi, Dec 31 (IANS): The Central Bureau of Investigation has registered a case against Hyderabad-based IVRCL Ltd, its Managing Director E. Sudhir Reddy, and Joint Director R Balarami Reddy in connection with a Rs 4,837 crore bank fraud case and carried out searches at several locations.

A CBI official said that the agency registered a case against IVRCL Ltd and its MD and Joint Director and other unknown public servants/others on a complaint from State Bank of India, Hyderabad.

He said that it was alleged that the accused, in connivance with unknown public servants and others, defrauded the consortium of public sector banks, consisting of State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab and Sind Bank, and Union Bank of India and caused a loss of Rs 4,837 crore.

He said that in the complaint, it was alleged that the borrower company represented by its Directors had availed various credit limits from the consortium of banks, and cheated them, without repaying the loan amount.

"It was also alleged that as per the Forensic Audit Report, the company made payments to related parties through LCs, without recording any purchase transactions in the books & routed the funds to the account of the company and thereby misappropriated the bank funds," he said.

The agency sleuths carried out searches at the residential and official premises of the accused at Hyderabad which led to the recovery of several incriminating documents.