Nidhi Biotech Private Limited

The company, which was into the trading of seeds and other agri-products, availed credit limits of Rs 6 crore for working capital in October 2017. The company allegedly submitted fabricated challans as proofs for infusion of the capital. Moreover, the transactions were not being routed through the CC account. Srinivas Reddy allegedly offered non-existent immovable properties in Abdullapurmet, Santoshnagar and Mehdipatnam as security for the loan amount. Of the three collateral properties, two property titles were defective and not traceable. During the bank’s internal audit inspection in November 2018, it was found that the unit was closed and the company could not show physical stocks or proper records of sale proceeds even after several reminders. Based on the inspection report, the account turned into a Non-Performing Asset (NPA) in December, 2018.