New Delhi: The Central Bureau of Investigation (CBI) has registered a case against IL&FS Transportation Network Ltd and its directors for allegedly defrauding 19 banks to the tune of Rs 6,524 crore between 2016 and 2018, officials said on Friday. Banks affected by this alleged fraud include Punjab National Bank, Canara Bank, Bank of India, State Bank of India, Axis Bank, Yes Bank and many more. IL&FS Transportation Networks is a subsidiary of IL&FS Limited, which filed for bankruptcy in 2018.
‘ITL embezzled public money of over Rs 6,524 crore’
Canara Bank, which is the complainant in the case, told the CBI, “Public money to the tune of more than Rs 6,524 crore has been embezzled by ITL and thus all the lenders have been defrauded. The accused are white-collar criminals and have been arrested under the law.” He knows the intricacies of the law very well and knows how to save himself from the clutches of the law.
In its FIR, the CBI booked Mumbai-based ITNL and its directors Karunakaran Ramchand, Deepak Das Gupta, Mukund Gajanan Sapre and the then Chief Financial Officer (CFO) Dilip Lalchand Bhatia for alleged criminal conspiracy and cheating as well as under provisions of the Act. Have done Corruption Prevention Act.
CBI raids in Delhi, Gurugram and Mumbai
Officials said the agency recently carried out searches at the premises of the accused persons in Delhi, Gurugram and Mumbai. It is alleged that the accused entered into a criminal conspiracy to defraud 19 banks under multiple banking arrangements (Canara Bank being the largest lender).
The loan account was declared a non-performing asset (NPA) in 2018 and later classified as “fraud” in 2021.
In its complaint to the CBI, which formed the basis of the FIR, Canara Bank has alleged, “The accused have resorted to fraud, misappropriation of funds, circular transactions between related/sister concerns, misappropriation of sanctioned loan facilities by misrepresentation of books of income.” 6,524 crore (up to 31.10.2021) to the lending banks on account of utilization and expenditure etc. and a similar wrongful gain to themselves.
Largest ‘build, operate and transfer’ subsidiary of IL&FS
In its complaint, the bank claimed that ITNL, a subsidiary of IL&FS, owns the largest ‘build, operate and transfer’ road assets in India and is a leader in the transport infrastructure sector with its presence in metro rail, city bus service and borders. I am a market leader. Check Post.
“For the said business, ITNL had availed various credit facilities under several banking arrangements. Canara Bank, being the largest lender, extended a Re 1 term loan of USD 75 million and External Commercial Borrowings (ECB) under sanctioned a term loan of Rs 500 crore (USD 25 million from Canara Bank, London Branch and USD 50 million from E-Syndicate Bank, London Branch) to the borrower company,” Canara Bank’s complaint alleged.
‘Account was put under forensic audit’
The bank claimed that the account started becoming irregular and was later put under forensic audit. Audit observed that quarterly foreign exposures were not disclosed in ITNL’s minutes for the Board of Directors for the financial years 2015-16 and 2017-18. This showed a possible violation of the insider trading policy by one of the key managerial persons, wherein one of them appears to have obtained approval to sell shares of ITNL, the bank alleged. The audit also flagged issues like possible diversion of funds, taking fake and dummy competitive quotes from sub-contractors, and fictitious expenditure on purchase of steel from a vendor who is registered as a trader of tyre.
The CBI has alleged that the accused wrongfully caused a loss of Rs 6,524 crore to the consortium and enriched themselves by wrongful means.
(With PTI inputs)