PremiumThe probe agency said searches were conducted at 16 locations, including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, Vishakhapatnam, etc.
NEW DELHI : The Central Bureau of Investigation (CBI) has registered an FIR against Kolkata-based private company Corporate Power Limited and its promoters/directors, among others, in an alleged bank fraud case of over ₹4,000 crore.
“A case has been filed on a complaint by Union Bank of India against a private company and others including its Promoters/ Directors, unknown Public Servants and Private persons on the allegations of bank fraud of ₹4037.87 crore (approx.) to the consortium of 20 banks," a statement from the CBI reads.
The Union Bank of India, the lead lender of the consortium, declared the account as non-performing assets (NPA) on September 30, 2013, and subsequently, the other member consortium banks also classified the said account as NPA, according to the CBI statement.
The accounts of the said borrower company were declared as fraud on October 25, 2019.
“It was further alleged that between year 2009 to 2013, the said borrower had submitted manipulated project cost statements and also diverted the bank funds. It was also alleged that the trade receivables mainly including transactions to related parties and funds were diverted to web of various companies who were dummy accounts, accordingly the borrower was able to siphon off the funds," the statement reads.
The probe agency said searches were conducted at 16 locations, including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, Vishakhapatnam, etc., which led to the recovery of incriminating documents and articles, and added that further investigation was underway.