The Central Bureau of Investigation has registered a case against a private company based at Mumbai and others including its 4 Directors/Guarantors; unknown Public Servants and unknown private persons on complaint from Bank of Baroda on the allegations of Bank fraud of approximately Rs.4957.31 crore to the consortium of 17 banks. The account of said Private Company was classified as NPA on 31.12.2017. Subsequently the accounts were also declared as fraud by the members of the consortium banks. The company was into development of infrastructure projects, which included designing, engineering & execution/construction of complex, integrated water transmission, distribution projects, water treatment plants, mass housing projects, precast design & construction, road construction and urban infrastructure etc.
It was further alleged that the accused had diverted huge amount of money from the borrower company to its related parties & subsidiaries and subsequently, these advances were written-off by the company. It was also alleged that the company had entered into fictitious sales & purchase transactions in order to inflate its turnover. Further, to avail credit facilities from the lender banks, the work-in-progress was allegedly inflated and huge amount of Vender Liability was directly adjusted against Customer Account without having any supporting document for the same. Searches were conducted today at 4 locations including at Mumbai, Thane, etc. which led to recovery of several incriminating documents and articles. Investigation is being carried out.
