New Delhi: The Central Bureau of Investigation (CBI) on Thursday said that they have registered a case against Gardenia India Limited, an NCR-based private firm and its top officials, for committing a bank loan fraud of Rs 109.17 crore to the consortium of banks led by Union Bank of India (UBI).
Gardenia India limited was classified as an NPA by UBI in 2015 and erstwhile Corporation Bank in 2014.
Gardenia India Limited was established on January 18, 2007, with an objective to carry out the business of owning, building, developing, colonising, promoting the residential, commercial and industrial buildings, cinema houses and to deal in all kind of immovable properties belonging to the group.
Gardenia availed term loans from UBI and erstwhile Corporation Bank.
Apart from personal guarantees provided by the Directors of the company, corporate guarantee was also provided by two other private companies based in Delhi.
“Gardenia India cheated the bank by diverting the bank funds and disposing off assets without bank’s permission. The sale proceeds were not routed through the project specified current accounts. The accused had diverted huge amount of money from the said borrower company to its related parties and subsidiaries. The company had allegedly opened account in non-consortium bank in violation of terms and conditions and received huge amount in those accounts which were subsequently diverted,” the CBI has alleged.
The CBI said that Gardenia India had not obtained the no objection certificate from the lender banks before selling hypothecated flats and had misrepresented the financial figures and information which led concealing of material information from the bank.
“Searches were conducted today at six locations, including at Delhi, Noida, Ghaziabad, Gurugram, which led to recovery of several incriminating documents and articles,” the official said.