CBI searches premises of firm in ₹3,847.58-crore cheating case

CBI searches premises linked to city-based firm and its promoters accused of cheating banks of ₹3,847.58 crore; case registered under criminal conspiracy and cheating. Another case filed against a city-based firm for allegedly defrauding banks of ₹975.08 crore.

The Central Bureau of Investigation (CBI) on Saturday carried out searches at four premises linked to a city-based firm and four of its promoters, who are accused of cheating a consortium of banks, led by State Bank of India (SBI), of ₹3,847.58 crore.

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The agency began its probe after receiving a complaint from SBI on August 17. The bank has alleged that the firm, Unity Infraprojects Limited (UIL), allegedly diverted the loan money it had obtained from the consortium through fictitious transactions, improper adjustment entries by fudging data, unexplained excess pay-outs and non-repayment of the outstanding loans, a CBI source said.

“The complainant claimed that the firm and persons associated with it entered into a conspiracy and defrauded the consortium - SBI and 15 other banks – of ₹3,847.58 crore,” the source added.

According to the bank’s complaint, the firm underwent a restructuring after which its cash-credit account allegedly slipped. Its loan account was declared a non-performing asset in June 2014. The account was classified as a fraud by SBI’s fraud identification committee at its meeting held in November 2019. SBI’s staff-accountability examination and internal investigation did not reveal the role of any of the bank officials in the alleged irregularities, the complainant said.

The CBI on September 14 registered a case against the firm, four of its promoters/guarantors/directors and unknown others, including public servants and private persons. The agency has invoked section 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code and sections of the Prevention of Corruption Act.

Despite calls, the firm could not be reached for its comment.

CBI books firm for ₹975.08-crore fraud

The CBI on September 12 booked a city-based firm for allegedly defrauding a consortium of banks, led by the Bank of Baroda (BoB), of ₹975.08 crore.

BoB has alleged that the firm, Mandhana Industries Limited (now GB Global Limited), and three others - its former managing director, former executive director and former director -, along with unknown public servants were allegedly part of a conspiracy to cause wrongful loss to the bank/s. The complaint alleged that the accused had diverted the loan funds through fraudulent transactions and circular trading, a CBI source said.

A case under section 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code and sections of the Prevention of Corruption Act has been registered.

Despite calls, the firm could not be reached for its comment.