To,

Shri K. N. Nayak
Chief Vigilance Officer
Baroda Corporate Centre,
C-26,G-Block,Bandra Kurla Complex,
BOMBAY-400051
E-mail :- cvo.bcc@bankofbaroda.com

Dear Sir,

Sub: Fraudulent Loan transaction in connivance with the officials of

the Bank in Bank of Baroda - Hukumpeta Branch- Rajahmundry-
Andhra Pradesh - Reg.

Ref: Loan Account Number- 16720600003700

This in reference to the above subject, we submit as follows:

1) Pragnya Riverbridge Developers Limited (CIN No:

U70102AP2008PLC061777) (erstwhile Vision Heights Ltd.)( herein after
referred as "Company" )was originally incorporated as a Private Limited
Company in the name and style of M/s Vision Heights Private Limited on
10 th Day of November 2008 under the Companies Act, 1956 (No. 1 of
1956) and has changed its name to VISION HEIGHTS LIMITED on 25th
th March 2010 upon conversion into Public Limited Company and has
changed its name, once again, to PRAGNYA RIVERBRIDGE
DEVELOPERS LIMTED on 10th Day of July 2012 under the applicable
provisions of the Companies Act, 1956 (No. 1 of 1956) and is having its
Registered office at Bridge County, Opp. GIET College,
Chakradwarabandham, Rajahmundry-533296 Andhra Pradesh.

2) The Company was originally promoted by Mr. B Lakshmi Prabhakar,

Mrs. P Ratna Kumari( wife of Lakshmi Prabhakar).

3) The Company had entered into a Development Agreement-cum-General

Power of Attorney 19.6.2009 signed by 18 land owners in favour of the
Applicant Company and duly registered under Doct.No.1891/2009
wherein the rights and obligations are set-in with reference to various
sharing patterns as to construction. Of which the land parcel pertaining
to proposed school belongs to the Company. The name of the Project is
Known as Vision Heights( Presently known as Bridge County).( herein
after referred as project).

4) Mr. B Lakshmi Prabhakar, Mrs. P. Ratna Kumari( Wife of Lakshmi

Prabhakar) along with their near and dear floated an educational society
to operate a school and approached Bank of Baroda, Hukumpet branch
for obtaining loan for alleged development of school in the Project.
5) It is pertinent to note some critical dates of events before divulging into
other acts of the bank officials and proofs of their active connivance with
the " Vision Educational Society" in sanctioning, disbursing of the Loan.

S. No Particulars Date

1 Date of Formation of Society in the name of 29.10.2009

Vision Educational Society -Reg No 598/2009

2 Date of approaching for loan

3 Date of Sanctioning of Loan 28.7.2010

4 Date of Mortgage 29.7.2010

5 Date of Sanction of Approved Plan for proposed 17.3.2011

School

6) on the request of the Vision Education Society, Bank of Baroda ,

Hukumpeta branch rushed into sanctioning of loan by violating various
norms set out and over turned various checks that are incorporated to
protect the interest of the public money. the details of fraud/violations as
detailed below.

7) The Loan was sanctioned vide Letter Ref No : HUKUMP/ADV/10-11/1

dated 28.07.2010 and is subject to the following conditions:

Terms as per Sanction Letter to be Violation from the Bank purpose

followed by the Bank

Referred a letter ref: No Never disclosed what is this letter till

BOB/HUK/ADV/28/18 dated date
07.05.2010

‘PURPOSE’ of loan is for 1.There is no documentary evidence,

“construction of school building that was submitted to the bank for
(G+3), purchase of equipment, consideration, to prove that there
Library Books, furniture & Fixtures, was an understanding that shows
Computers etc.” that Company had allowed or
consented for construction of school
building, by vision education society,
in the premises of the Company's
property which shall be the foremost
document to verify before
sanctioning any loan for
construction.

2. The Director of Town and Country


Equitable /Simple Mortgage of following Properties:
Equitable /Simple Mortgage of land
Ac. 2.45cents situated at Rs. 511/1,
512/2, 517& 510 at velugubanda
village, Rajanagarm Mandal
standing in the name of Vision
Heights Private Limited valued at
2.45 Crores.
Planning (DTCP), Government of
Andhra Pradesh gave “Technical
Approval” vide its
Lr.D.Dis.No.2888/2010/R, dt.
17.3.2011 i.e. after about 8 months
after the sanction of the loan of
Rs.450 Lakhs on 28.7.2010, to the
Vision Educational Society,
disbursement of part of the loan after
creation of Deed of Simple Mortgage
on 29.7.2010 in favour of the Bank
that too for Primary School building
with Stilt+ Ground+ Upper Floor.
3. It is to submit that the said land is
neither in the name of Vision Heights
Private Limited nor the title was
crystallised in the name of the
Company, the very fact which shows
the connivance of the Bank Officials
and legal department of the Bank to
facilitate the sanction of the loan to
the people who approached with a
clear intent of siphoning of public
money.
4.Further, the Schedule Property is
barred by the provisions of Clause
29(e) at page 37 of the Development
Agreement-cum-General Power of
Attorney 19.6.2009 signed by 18 land
owners in favour of the Applicant
Company and duly registered under
Doct.No.1891/2009 a reference of
which was also given in the disputed
Deed of Simple Mortgage dated
29.7.2010. The said Clause prohibits
from creating any mortgage on the
land and allows any security only on
the built up Units as well as the
structures under the process of
construction. It may kindly be noted
that at the time of sanction of loan,
there were no structures at all and it
is only vacant land barred for creation
of mortgage as stated above.
Equitable Mortgagee of Land villa to The Bank had not obtained any proof
be constructed there in plot number in this regard as to an agreement of
17 C type villa in vision heights sale and payment made there of.
integrated township( presently
known as Bridge County) in the
extent of 523 sq. yds. in the name of
Mr. Borusu Satya Venkata Srinivas
to be valued about 106.09 lacs( as
per the sale agreement- final
valuation to be obtained after
completion of construction,
mortgage allowed to be created after
construction is completed and title
is acquired but before the
disbursement of Second tranch of
loan.

Corporate Guarantee of Vision The Corporate Guarantee was dated

Heights Private Limited 16.12.2010. The purported
guarantee was backed by a Board of
Directors resolution dated 17.05.
2010.

The reading of the Board Resolutions

as under" RESOLVED that the
Company furnishes a guarantee in
the usual form guaranteeing the
repayment of loan and interest of the
Loan of Rs. 450 Lacs for a term of 7
Years sanctioned by Bank of Baroda,
Hukumpeta Branch, Morampudi
Road, Hukumpeta, Rajahmundry -
533103 vide their letter number
BOB/HUK/ADV:28/18 dated
07.05.2010 to M/s Vision Educational
Society registered vide society
number 598/2009 sitauted at D No:
3-347/1, Venugopalapuram, Katheru,
Rajahmundry"

The disbursed loan was Sanctioned

vide reference number
HUKUMP/ADV/10-11/1 dated
28.07.2010

The fact that the new sanction letter

was never backed by the Company's
Corporate Guarantee was completely
 ignored by the bank officials in
sanctioning and disbursal of loan.

Further , it was evident from two

sanction letters that the bank was
not acted upon the first sanction
letter for the reasons best known to
its officials hurriedly sanctioned the
loan again in one day and got all the
documentation completed fast and
disbursed loan on 14.08.2010 not
even waited proper securitisation of
the debt by way of Corporate
Guarantee by the Company.

Special Conditions

3) Society to submit registered lease No such deed is existing in the

deed between vision heights private records of jurisdictional SRO at
limited and M/s . Vision Rajanagaram . The Bank failed to
Educational Society establish the fact how the Company
allows Vision Educational society to
take and construct and run a school
in its land without any proper
document.

6) Society to submit all required 1. Society had not leased the land
permissions before the
disbursement. 2. the Plan for construction was
accorded only after the disbursal of
the Loan.

3. The School was never approved by

any regulatory authority/ Board for
commencing and conducting
classes.

22) The Credit facilities will be
disbursed only after execution of the
prescribed documents/papers and
compliance of the Various terms
and conditions to the Bank's
Satisfaction
1. it is the officials who got satisfied
by execution of baseless documents
to disburse public money to the
fraudsters, who came with an
intention to siphon the funds.

Discrepancy in terms of execution of The Entire documentation was

Documentation executed in Rajahmundry and
further on the same day the Bank
officials took so much pain in visiting
 a place called " Bhimavaram" which
is above 100 km from Rajahmundry
for execution of Demand Promissory
Note clearly establish the fact that
the documentation was done at
different dates and gaps were filled
subsequently by the officials of the
Bank at their convenience which is
contrary to the law.

Simple Mortigage Deed 4969/2010 The wordings of the Simle Mortigage

dated 29/07/2010 deed states that

" where as the Mortigagor ( Company

) is availing the Loan of Rs
4,50,00,000/-( Rupees Four
Hundred and Fifty Lacs Only) from
the Mortigagee ( Bank) on this day of
29th July 2010."

Schedule of Property describes " all

the part and parcel of an extent of
Ac.2.45 cents under Rs. Numbers
511/1,512/2,517,517/2,510/1 with
a built up area of 51272 square feet
..."

Further the resolution attached the

said loan reads as follows
"....sanction be and is hereby given
for the company to borrow from the
Bank of Baroda , Hukumpet Branch
Rajahmundry by way of loan/cash
credit/overdraft upto Rs.
4,50,00,000/-( Rupees Four
Hundred and Fifty Lacs Only)against
simple mortigage of land ..."

From the above it is evident that

bank officials had never cared to
read what documents are being
executed to secure the loan and
whom they are giving the loan in
connivance with Vision Education
Society for their benefits.
8) The Bank had failed to discharge its primary responsibility of protecting
of public money, became an active conspirator, with promoters of Vision
Society, who have created a Society with malicious intentions, as appear
on face, to siphon the monies of the Bank, in creating false records,
sanctioning loans based on fake resolutions and documents and
favouring of M/s. Vision Educational Society.

Secretary
CENTRAL VIGILANCE COMMISSION
Satarkta Bhawan,
Block A, I.N.A.,
New Delhi-110023.