"The Central Bureau of Investigation has registered a case against a private company(borrower company) based at Hyderabad and others including its Chairman and Managing Director, Guarantor; Managing Director and Guarantor; other Directors; Mortgagor; Other private firm and unknown public servants on a complaint from State Bank of India (Lead Bank) on behalf of other member banks (i.e. IDBI Bank, Canara Bank, BOB, BOM, PNB, UBI, EXIM Bank), for causing an alleged loss of Rs.4736.57 crore (approx) to the Banks," read an official statement.
As per the statement, It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of Banks. The account became NPA on 25.01.2017 with retrospective effect from 28.10.2013 and reported as a fraud on 20.02.2020.
It was further alleged that the borrower company based at Hyderabad during the period 2013-18 had indulged in falsification/fabrication of books of accounts, manipulations/falsification of the financials to show unrealizable invoked BG amounts as realizable investments, falsified details of promoters' contribution, converted receivables from related parties to investments to siphon off the banks funds, cheating the SBI and other consortium member banks.
Searches were conducted at the residential and official premises of the accused at Hyderabad and Vijayawada which led to the recovery of several incriminating documents and other material evidence. The investigation is continuing, the statement added.
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