CBI Registers Bank Fraud Case of Rs. 210.13 Crore in 6 Banks led by Indian Bank

The Central Bureau of Investigation (CBI) has registered a case on the complaint of Indian Bank, Stressed Asset Management Branch, Mittal Chamber, Nariman Point, Mumbai, against M/s Chandra Proteco Limited (M/s. CPL) and its Directors namely (i) Ranjeet Gupta, (ii) Anilesh Gupta (iii) Smt. Aparna Gupta, unknown public servants and unknown persons for offenses of criminal conspiracy for cheating and also the  offenses under the Prevention of Corruption Act, resulting in alleged wrongful loss of Rs.210.13 Crore (approximately) to the five banks including the complainant Bank.

In the complaint, it has been alleged that the accused persons entered into a criminal conspiracy, obtained Cash Credit facility, Term Loan and Letters of Credit amounting to Rs.541.46 Crore from consortium of six banks led by the Indian bank. The company was engaged in systematic financial manipulations including operating clandestine accounts with non-consortium banks, devolving of letters of credit through entities sharing common Directors/sister concerns. The company defrauded the banks by not utilizing the bank funds for the intended purpose, for which it was sanctioned. Further, the company diverted the funds by siphoning off through associate companies and caused loss to the bank.

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Following registration of the case, the CBI conducted searches at multiple premises linked to the Directors of M/s CPL in Prayagraj, UP.  During the searches, Ledgers of the relevant period and other incriminating documents relevant to the investigation, were recovered and seized.

Investigation is continuing to ascertain the full extent of the conspiracy, identify the role of all involved persons, including public servants and private individuals, and trace the end-use of the loan funds.

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