IVRCL Limited, an infrastructure company based in Hyderabad, is mired in a big scam. The CBI, based on a complaint by the State Bank of India, has booked its chief Sudhir Reddy and joint MD Balarami Reddy for allegedly conniving with public servants to cheat a consortium of banks of as much as Rs 4,837 Cr. This is an unproven fraud as of now.

Besides SBI, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank, and Union Bank of India have reportedly suffered losses because of the scam. The firm had got loans running into thousands of crores, only to not repay.

It may be noted that IVRCL is not the only Hyderabad-based realty and infra firm in the dock. GMR, GVK, and Lanco, among others, too, have been under the radar of investigating agencies.

Commenting on the situation, commentator Sumanth Raman wrote, "Long list of Hyderabad based firms.... I remember a corporate honcho who predicted this situation over a decade ago: Many of the promoters have an uneasy relationship with the law. They see breaking it as a necessary inconvenience, nothing more." It's reported that the Satyam and Maytas scandal was the starting point of the history of taint.