Bhubaneswar: The Central Bureau of Investigation (CBI) conducted raids in Odisha and three other states in connection with a bank fraud case involving Rs 1109 crore against M/s Gupta Power Infrastructure Ltd, Bhubaneswar.
In an official statement on Sunday, the CBI said that searches were carried out by the premier investigating agency on Saturday at six locations across four states – West Bengal, Odisha, Tamil Nadu, and Uttarakhand.
The case pertains to alleged defrauding of Canara Bank to the tune of Rs 1109 crore in connection with various fund based and non-fund based financial facilities availed by the accused company from the Bank.
It is alleged that the accused manipulated the value of stocks and inflated trade receivables, falsified the company’s financial statements to obtain enhanced credit facilities, siphoned and diverted loan funds, and resorted to evergreening of accounts, thereby causing a wrongful loss to the bank.
The searches were carried out pursuant to search warrants issued by the Court of the Special Judge, CBI, Bhubaneswar, Odisha. The company’s manufacturing unit in Bhubaneswar was also raided by officials of the central probe agency during the simultaneous operation across four states.
The search operations covered the residential premises of four accused Directors of Gupta Power Infrastructure Ltd. at Bhubaneswar; the registered office of the company at Kolkata, West Bengal; and three manufacturing units of the company located at (i) Kashipur in Udham Singh Nagar district of Uttarakhand; (ii) Tiruvallur in Tamil Nadu; and (iii) Bhubaneswar in Odisha.
The searches resulted in the seizure of incriminating documents. Investigation in the case is continuing.
It may be recalled that state-owned banks, including Punjab National Bank (PNB) and Bank of India (BOI) had in February last year reported alleged fraud by the Odisha-based Gupta Power Infrastructure Ltd to the Reserve Bank of India (RBI).
According to reports, PNB had reported a fraud of Rs 270.57 crore by company. The alleged fraud was reported to the RBI in non-performing asset (NPA) account of Gupta Power Infrastructure Ltd.
The loan was reportedly given by Station Square branch of the bank in Bhubaneswar. The bank had already made provisions amounting to Rs 270.57 crore, according to prescribed prudential norms.
Similarly, BOI had reported a fraud of Rs 226.84 crore by Gupta Power Infrastructure to the Reserve Bank. The bank had informed that Non Performing Asset (NPA) of Gupta Power Infrastructure Ltd has been declared as fraud.
Against the outstanding amount of Rs 226.84 crore, the bank had made provisions of Rs 212.62 crore in case of Gupta Power Infrastructure Ltd, it said.