The Central Bureau of Investigation has arrested two Promoters/Directors of Nagpur based private Projects Company; then DGM & Branch Head of Canara Bank, Prime Corporate Branch, Bangalore in an on-going investigation of a case for causing an alleged loss of Rs.290.77 crore(approx) to two Banks. Both the accused are also the Promoters/Directors of Group many companies.
CBI registered the case on 29.09.15 against the Promoter/Director of Kolkata/Nagpur based private Project Company; his son; two other Directors of said private company; said private Projects Company; Other Kolkata based private Infrastructure Company & unknown others on a complaint received from Canara Bank, Bangalore & Vijaya Bank, Bangalore, on the allegations that the accused persons cheated both the Banks, causing a total loss of Rs.290.77 crore to Canara Bank (Rs.218.85 crore) & Vijaya Bank (Rs.71.92 crore). The private Projects Company is one of the group companies promoted by both the arrested accused(Father & his son).
During investigation, it was revealed that the said Promoter/Director along with his son, in conspiracy with then DGM & Branch Head, Canara Bank, Prime Corporate Branch, Bangalore & others allegedly cheated Canara Bank & Vijaya Bank, while executing an EPC contract for setting up of a coal based power project at Banka(Bihar) on behalf of other private Infrastructure & Power Company also based at Kolkata, another group company of said Group. The Private Projects company allegedly awarded the Civil & Structural Work of the EPC contract to private Infrastructure Company based at Kolkata and executed a contract agreement, as per which the former was required to pay mobilization advance of Rs.157.9 crore(approx) in 5 instalments and the latter was required to give Bank Guarantee of the like amount to the former. It was further alleged that they also executed an amendatory agreement (without the knowledge of the banks), as per which the private Infrastructure Company based at Kolkata was required to refund the mobilization advance on demand of the Private Projects Company. The major portion of the discounting proceeds of LCs issued by both the Banks in favour of Private Infrastructure Company were refunded by said Infrastructure Company to the Private Projects Company under obligation of the said amendatory agreement and the private Projects Company diverted the refunded amounts for other purposes than for which the loan was sanctioned.
It was also alleged that the then DGM & Branch Head, Canara Bank, Prime Corporate Branch, Bangalore recommended & forwarded credit proposals to the competent authorities of Canara Bank falsely confirming about assignment of Bank Guarantees worth Rs.157.9 crore (approx) given by private frastructure Company in favour of the Bank by the accused borrower company(The Private Projects Company).
During investigation, it is learnt that 13 group companies of said Group allegedly borrowed money from over 20 banks / financial institutions & the accounts have become NPA. Since 2014, the alleged total outstanding loans are nearly Rs.11,376.77 crore(approx).
The arrested accused are being produced today in the Designated Court at Kolkata.