The Central Bureau of Investigation (CBI) on Tuesday conducted searches at the premises of YSR Congress Party leader and industrialist K. Raghu Rama Krishna Raju here and in Andhra Pradesh in connection with alleged evasion of bank loans by his companies.

The officials of the central agency conducted searches at the Gachibowli residence, office and other premises of the industrialist, a candidate of the YSRCP in Narsapuram Lok Sabha constituency in Andhra Pradesh.

There were also reports of CBI searches at the residence and other premises of Raju in West Godavari district in neighbouring Andhra Pradesh.

It is alleged that Raju’s firm Ind Barath Power Ltd was sanctioned Rs 2,655 crore loan by three non-banking financial corporations (NBFCs) — Power Finance Corporation Ltd, Rural Electrification Corporation Ltd and India Infrastructure Finance Corporation Ltd — to set up a thermal power project.

The firm is accused of defaulting on Rs 948 crore of the sanctioned amount, the official said.

Raju, however, denied that there were any raids or searches at his premises. He said the CBI officials recorded his statement following a complaint by banks about Rs 600 crore loan default.

The YSRCP leader said his power companies could not repay the loans due to losses. He said he had applied to banks for one-time settlement of the loans.

Raju had declared family assets of over Rs 300 crore in his affidavit submitted to the election authorities along with his nomination papers.

Polling in Narsapuram along with 24 other Lok Sabha seats was held on April 11.

Raju had started his political career with YSRCP when the party was floated by Y.S. Jagan Mohan Reddy in 2011. In 2014, he joined the BJP after he was denied ticket to contest the Lok Sabha elections. He returned to the YSRCP last month and secured the ticket from Narsapuram.