Bank Fraud
CBI charges Hyderabad-based construction company with Rs 4736.57 crore bank fraud
Hyderabad/IBNS: The Central Bureau of Investigation (CBI) has filed a case against a Hyderabad-based Coastal Project Ltd for defrauding a consortium of banks of Rs 4736.57 crore, said media reports on Saturday.
he case was registered based on a complaint by State Bank of India (lead bank) on behalf of the other banks of the consortium, including IDBI Bank, Canara Bank, BOB, BOM, PNB, UBI, EXIM Bank.
According to the complaint, Coastal Project Ltd, a construction company falsified/fabricated account books to represent unrealisable bank guarantees as realisable between 20013 to 2018, misrepresentation details of promoters’ contribution, converted receivables from related parties to investments to siphon off the bank's funds, cheating the SBI and other consortium member banks, the CBI said, according to India Today report.
The company committed the fraud in connivance with unknown public servants who have been also booked by the CBI, the report added.
The company had turned into a non-performing asset on January 25, 2017 with retrospective effect from October 28, 2013 and subsequently declared fraud on February 20 last year, said reports.
Searches were conducted in the residential and official premises of the accused at Hyderabad and Vijayawada, leading to the recovery of several incriminating documents and other material evidence, said media reports.
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