The Supreme Court has declined to quash the investigation involving Andhra Pradesh Deputy Speaker and TDP MLA Kanumuru Raghurama Krishna Raju in an alleged bank loan default case, leaving him and the other directors to face the ongoing legal proceedings. The petitioners had approached the apex court seeking to have the proceedings against them set aside, arguing against the continuation of the investigation. However, the court dismissed their pleas, clearing the way for the Central Bureau of Investigation (CBI) to continue its probe. The ruling marks a significant development in the case, which centres on allegations of financial irregularities involving a company linked to Raghurama Krishna Raju.
At the centre of the dispute are allegations involving approximately ₹237 crore in bank loans associated with Ind-Bharat Power Gencom Limited, where Raghurama Krishna Raju served as a director. Investigators have been examining allegations that loans were obtained from banks and that the funds were diverted to other companies linked to the accused. The CBI registered a case in connection with the alleged financial irregularities, prompting Raghurama Krishna Raju and other accused persons to challenge the proceedings in court. The allegations remain subject to judicial scrutiny, and the dismissal of the petitions does not by itself establish guilt.
The Supreme Court’s December 16, 2025, order in the connected criminal appeals stated that there was no sufficient ground to quash the FIR and related proceedings at the threshold. It also clarified that the accused could raise their legal arguments before the trial court at the appropriate stage, including through a discharge application. The court did not express an opinion on the merits of those arguments, leaving them open for consideration in accordance with the law. The ruling therefore allows the criminal proceedings to continue while preserving the accused persons’ right to contest the allegations through the legal process.
