A major scandal involving Minister Ponguleti Srinivas Reddy has come to light, centering around the submission of fake bank guarantees. Investigations into Euro Exim Bank have revealed connections with prominent contractors in the Telugu states, leading to the exposure of fraudulent activities allegedly conducted by Ponguleti.
Reports by RTV have sparked widespread discussion, claiming that Ponguleti defrauded the Andhra Pradesh government of several thousand crores. His company, Raghava Constructions, secured contracts worth Rs 4,500 crores with APSPDCL (Andhra Pradesh Southern Power Distribution Company Limited) and APEPDCL (Andhra Pradesh Eastern Power Distribution Company Limited). The company has already received an advance payment of R 217 crores— Rs 115 crores from APSPDCL and Rs 102 crores from APEPDCL.
The primary allegation is that Ponguleti submitted fake bank guarantees for these contracts. APSPDCL has issued a letter to Raghava Constructions noting the expiration of the guarantee period. The guarantees were reportedly issued by Euro Exim Bank, a financial institution with no ties to India, raising suspicions of a significant scam.
The scandal also implicates other major contractors, such as Megha, in the misuse of fake bank guarantees to embezzle public funds. State Bank of India (SBI) and Union Bank of India (UBI) are reported to have played crucial roles in the scheme. The Reserve Bank of India (RBI) has referred the case to the Central Bureau of Investigation (CBI) for further investigation. Additionally, Congress MP Karti Chidambaram has addressed the issue, writing to the Union Finance Ministry and the RBI.