CBI Case Against IL&FS Subsidiary For Defrauding Canara Bank, SBI, PNB, 16 Other

The case was filed against IL&FS Transportation Network, which is a subsidiary of IL&FS. The subsidiary company had filed for bankruptcy in 2018.

According to NDTV, the CBI has alleged that IL&FS subsidiary cheated the banks of a total of ₹ 6,524 crore between 2016 and 2018.

In its FIR, the Central Bureau of Investigation (CBI) has booked Mumbai-based IL&FS Transportation Network Limited (ITNL) and its directors Karunakaran Ramchand, Deepak Das Gupta, Mukund Gajanan Sapre and then chief financial officer (CFO) Dilip Lalchand Bhatia for alleged criminal conspiracy and cheating as well as under the provisions of the Prevention of Corruption Act.

It is alleged that the accused entered into a criminal conspiracy to cheat 19 banks under multiple banking arrangements (the Canara Bank being the largest lender).

The loan account was declared a non-performing asset (NPA) in 2018 and subsequently, categorised as "fraud" in 2021.

In its complaint to the CBI, which became the basis for the FIR, the Canara Bank has alleged that the accused misappropriated the sanctioned credit facilities through cheating, diversion of funds, circular transactions between related and sister concerns and misrepresentation of books of income and expenditures.

The CBI has alleged that the accused caused a wrongful loss, amounting to ₹6,524 crore, to the consortium and wrongfully enriched themselves.

The finance firm had paid a total debt of ₹28,848 crore as of 31 March 2023, according to latest affidavit filed before the insolvency appellate tribunal NCLAT earlier this week.

The group has resolved debts through monetisation and termination/settlement of payments by its group entities from the concessioning authorities and counter-party to the relevant contract.

"As on March 31, 2023, the debt resolved through such monetisation and termination measures aggregates to ₹17,894 crores," said the status update report filed before the National Company Law Appellate Tribunal (NCLAT) by the company.

Updated: 02 Jun 2023, 09:44 PM IST