The Central Bureau of Investigation (CBI) carried out raids at six locations across four states in connection with an alleged bank fraud of Rs 1,109 crore involving Gupta Power Infrastructure Ltd.
The searches were conducted on Saturday in West Bengal, Odisha, Tamil Nadu and Uttarakhand, under warrants issued by a special CBI court in Bhubaneswar.
The case relates to fraud against public sector bank – Canara Bank over fund-based and non-fund-based credit facilities availed by the company.
The CBI alleged the accused manipulated stock valuations and inflated trade receivables, falsified financial statements to secure enhanced credit limits, diverted loan funds, and resorted to ‘evergreening’ of accounts to conceal defaults, causing wrongful loss to the bank.
Locations searched included the residences of four directors of Gupta Power Infrastructure in Bhubaneswar, the company’s registered office in Kolkata, and manufacturing units in Kashipur in Uttarakhand, Tiruvallur in Tamil Nadu, and Bhubaneswar.
The investigation is going on and more details will be released soon.
State-owned banks, including Punjab National Bank (PNB) and Bank of India (BOI) had in February this 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.
