Hyderabad: The CBI has registered a case against Rajahmundry-based Yuvaraj Power Projects, its directors, auditors, contractors and unidentified public servants over an alleged fraud involving a ₹95.2 crore Pooled Municipal Debt Obligation (PMDO) facility. Funds meant for solid waste composting facilities and a 13 MW power plant were allegedly diverted through layered and circular transactions, according to the agency. The CBI has also invoked provisions of the Prevention of Corruption Act against unknown public servants for the alleged abuse of official position in sanctioning the credit facility.Hyderabad figures prominently in the alleged fund trail. According to the FIR, ₹59.5 crore of the disbursed funds was transferred to an Axis Bank current account in Gachibowli belonging to EPC contractor Pratham Envirotech Engineers. Several accused and entities linked to the project are also based in Hyderabad.The case was registered based on a complaint filed by Dr Vivek Rajawat, general manager and head of department, NPA management, India Infrastructure Finance Company (IIFCL).₹88.2 crore disbursed under PMDO facilityThe FIR names 16 accused, including Yuvaraj Power Projects; its chairperson and managing director, Venkata Satyaramu Maddipoti alias MVS Ramu; additional director Teegala Venkata Satyanarayana; directors Lanka Visweswara Rao, Satyanarayan Chaudhary Maddipoti alias MS Chowdary, Vijaya Kumar and Seshuvardhan Vundavalli; and sponsors M Varalakshmi and M Sujatha.Chartered accountant and statutory auditor J Praveen, and audit firm JBRK and Co., represented by him, have also been named, along with cost accountant and special auditor R Sreenivasa Rao.The accused list also includes Pratham Envirotech Engineers, its managing director, Venkata Mallikarjuna Reddy Yannam, lenders’ engineer, described in the complaint as M/s EPC Consultants, and unknown public servants.According to the FIR, the accused allegedly entered into a criminal conspiracy and induced financial institutions to sanction a ₹95.2 crore Pooled Municipal Debt Obligation (PMDO) facility. Of this, ₹88.2 crore was disbursed.IIFCL sanctioned ₹6.4 crore as its share of the facility and disbursed ₹5.1 crore. As of May 31, 2026, the outstanding amount claimed by IIFCL, including principal and interest, stood at Rs 20.6 crore.The funds were sanctioned for setting up solid waste composting facilities and a 13 MW power plant. The CBI alleged that, instead of being used for the sanctioned purpose, the money was diverted and siphoned off through circular transactions and layering. False and forged utilisation certificates were allegedly submitted to conceal the diversion.Gachibowli account at centre of money trailThe FIR places a substantial part of the alleged diversion in Hyderabad. A forensic analysis cited in the case found that ₹59.5 crore of the disbursed funds was transferred to the current account of Pratham Envirotech Engineers at an Axis Bank branch in Gachibowli.From this Hyderabad account, approximately ₹12.8 crore was allegedly routed to various companies in which the borrower company’s directors had interests.Pratham Envirotech Engineers and its managing director, Venkata Mallikarjuna Reddy Yannam, are based in Gachibowli. Yuvaraj Power Projects director Lanka Visweswara Rao resides in Jawahar Nagar, Hyderabad, while special auditor R Sreenivasa Rao is a resident of Ramakrishnapuram.The FIR alleges that unidentified public servants abused their official position in connection with the sanctioning of the credit facility. The case invokes Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988, apart from IPC provisions dealing with criminal conspiracy, criminal breach of trust, cheating and forgery.
