In a significant financial fraud case, Axis Bank has filed a criminal complaint against a Hyderabad-based private company, alleging a loan fraud amounting to a staggering ₹11.74 crore. The accused entity, Keerthi Srinivasa Solutions Private Limited (KSSPL), operated three restaurant brands.
Forensic Audit Uncovers Systematic Fund Diversion
Based on the complaint lodged by the bank's Mega Wholesale Banking Centre in Begumpet, the Hyderabad police registered a case on Thursday under the new Bharatiya Nyaya Sanhita (BNS). The bank's assistant vice-president, R Varun Kumar, stated that a forensic audit revealed a systematic diversion of term-loan funds by the client.
Axis Bank had sanctioned a term loan of ₹14.15 crore to Keerthi Srinivasa Solutions Private Limited in 2017. The account turned into a non-performing asset (NPA) on April 16, 2025, with outstanding dues of ₹11.74 crore.
Fake Invoices and Circular Transactions
The forensic investigation, conducted by Komandoor & Co LLP, uncovered a web of suspicious transactions. It found that a sum of ₹6.26 crore paid to SSS Engineering Projects and ₹64 lakh sent to Sri Radhe Traders was swiftly rerouted to the personal accounts of the company's directors—T Balaji and P Anil Kumar—and a relative.
Investigators identified circular transactions totalling approximately ₹4.16 crore. The invoices raised for these transactions were later discovered to be counterfeit. Physical inspections conducted in February 2025 revealed that KSSPL's Hyderabad office was shut down, and its proposed restaurant outlets in Bengaluru did not exist.
Bank's Red Flags and Police Probe
Despite repeated notices from the bank, the company refused to share its books of account, vendor contracts, or bank statements. This non-cooperation prompted Axis Bank to mark the account as red-flagged in November 2024 and formally classify it as a fraud on May 19, 2025.
On December 3, the Central Crime Station (CCS), Hyderabad, registered a case against KSSPL and its two directors. They have been charged under multiple sections of the BNS, including:
- Section 318(4) for Cheating
- Section 336(3) for Forgery for the purpose of cheating
- Section 340(2) for Using as genuine a forged document
- Read with Section 61(2) for Criminal conspiracy
The Economic Offences Wing of the CCS has been entrusted with the investigation. A CCS official stated, "We are analysing the evidence provided by the bank. Based on the findings of the preliminary investigation, appropriate legal action will be initiated."
This case highlights the ongoing challenges financial institutions face in detecting and preventing sophisticated loan frauds, prompting stricter due diligence and monitoring of high-value accounts.
