The CBI FIR is based on a complaint filed by Union Bank of India alleging bank fraud totaling ₹4,037.87 crores to a consortium of 20 banks.
The Central Bureau of Investigation (CBI) on Friday said it registered a case against a Kolkata-based private company and others, including its promoters or directors, unknown public servants, and others, in connection with an over ₹4,000 crore bank fraud.
The agency also carried out searches at 16 locations in relation to the case.
The CBI has named Corporate Power Ltd, Manoj Jayaswal, Abhishek Jayaswal, Abhijeet Jayaswal, Rajiv Kumar, Bishal Jaiswal, Munna Kumar Jaiswal, PN Krishnan, Rajeev Goyal, Arun Kumar Shrivastava, SN Gaikwad, Prem Prakash Sharma, and Arun Gupta – all promoters and directors of the company – and unknown public servants and private persons.
The CBI First Information Report (FIR) is based on a complaint from the Union Bank of India against Corporate Power Ltd and others, including its promoters or directors, unknown public servants, and private individuals, on allegations of bank fraud of ₹4,037.87 crores to the consortium of 20 banks.
The Union Bank of India, the lead bank, declared the account as NPA on September 30, 2013, and subsequently, the other member consortium banks also classified the said account as NPA.
The accounts of the said borrower company were declared fraudulent on October 25, 2019.
In the complaint, it was alleged that between 2009 and 2013, the said borrower had submitted manipulated project cost statements and also diverted bank funds.
It was also alleged that the trade receivables, mainly including transactions to related parties and funds, were diverted to the webs of various companies, which were dummy accounts, and the borrower was able to syphon off the funds, the CBI said.
The CBI carried out searches at 16 locations, including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, Vishakhapatnam, etc., which led to the recovery of incriminating documents, articles, etc.