ED raids various premises of GTL Ltd to probe bank fraud case

The Enforcement Directorate conducted searches at premises linked to GTL Limited in connection with a bank fraud case. GTL Ltd is accused of unlawfully acquiring loans and conspiring with vendors and bank employees to syphon off ₹4,760 crore of the loan amount.

MUMBAI: The Enforcement Directorate (ED) on Wednesday carried out searches at various premises linked to GTL Limited in connection with a bank fraud case.

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The ED investigation is based on a case registered by the Central Bureau of Investigation (CBI) in January this year, against the firm and others, for unlawfully acquiring loans from a bank consortium of about 24 lenders and then conspiring with vendors and some bank employees to syphon off ₹4,760 crore of the loan amount.

CBI alleged that GTL Ltd was extending advances to vendors year on year without the supply of material/goods, and eventually, these advances were provisioned.

The various vendor companies had been allegedly created and operated with a mala-fide intention of siphoning off the funds and other credit facilities in connivance with the borrower, GTL Limited, the sources said.

The CBI FIR pointed out that the firm gave an advance of ₹2,113.76 crore in 2009-10 to certain entities, against which the material received by it was only worth around ₹65.33 crore - only worth 3.1% of the advance.

“Despite the non-receipt of the goods against the advances given, again in the financial year of 2010-11, an amount ₹4,438.20 crore was given as advance to the same set of entities, against which the material received was only of ₹708.70 crore – around 15.97% of the advance,” the source said.

The company was engaged in the business of providing telecom network deployment services, operations and maintenance services, professional services, network planning and design services and energy management services to telecom operators in India and international markets.