The Central Bureau of Investigation (CBI), on Friday, filed a case against IL&FS Transportation Network Ltd and its directors.
The case has been filed for allegedly defrauding 19 banks to the tune of Rs 6,524 crore between 2016-2018, an NDTV report said.
Some of the banks that IL&FS allegedly defrauded include Punjab National Bank (PNB), Canara Bank, Bank of India (BoI), State Bank of India (SB), Axis Bank, and Yes Bank, among others.
Mumbai-based IL&FS Transportation Network Limited (ITNL) and its directors Karunakaran Ramchand, Deepak Das Gupta, Mukund Gajanan Sapre and then chief financial officer (CFO) Dilip Lalchand Bhatia have been booked for alleged criminal conspiracy and cheating as well as under the provisions of the Prevention of Corruption Act.
Mumbai-based IL&FS Transportation Network Limited (ITNL) and its directors Karunakaran Ramchand, Deepak Das Gupta, Mukund Gajanan Sapre and then chief financial officer (CFO) Dilip Lalchand Bhatia have been booked for alleged criminal conspiracy and cheating as well as under the provisions of the Prevention of Corruption Act.
Citing Canara Bank's complaint to CBI, the report said, "Public money of more than Rs 6,524 crore has been misappropriated by ITL and thereby cheated all the lenders. The accused persons are white colour criminals and very well know the intricacies of the law and know to save themselves from the clutches of the law.
The fraud done by IL&FS Transportation Network Ltd (ITNL) and its directors came to light in 2018 after the National Company Law Tribunal (NCLT) appointed a new board of directors that took over the parent firm IL&FS.
The forensic audit on IL&FS and its 348 group companies was done by Grant Thorton, the report added, citing the First information report (FIR). It also mentioned that there were potential irregularities in reporting provisions for expenses, which may have a direct impact on reported profits.
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The company also allegedly overstated its income, which highlighted an incorrect financial position of the company.
ITNL also transferred substantial funds without accounting or entering the records in the company software. Commercial papers were arranged to allow circular transactions between ITNL and other group firms, the FIR stated.
Other issues detected included taking fake competitive quotes from sub-contractors and recording fake expenses on buying 459 tonnes of steel from a vendor registered as a trader of tires, the report said.
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