New Delhi: The Central Bureau of Investigation (CBI) has registered a case on a complaint from Union Bank of India against a Kolkata-based private company, its directors and others for cheating a consortium of banks to the tune of Rs 4037.87 crore.
The Union Bank of India, the lead bank, declared the account of Corporate Power Limited as NPA on September 30, 2013 and subsequently, the other member consortium banks also classified the said account as NPA.
The accounts of Corporate Power Limited was declared fraud on October 25, 2019.
“Between 2009 and 2013, Corporate Power Limited had submitted manipulated project cost statements and also diverted the bank funds. The trade receivables mainly including transactions related to parties and funds were diverted to web of various companies who were dummy accounts, accordingly the borrower was able to siphon off the funds,” the CBI said.
The officials said that searches were conducted at 16 locations including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, Vishakhapatnam which have led to the recovery of incriminating documents.
Further investigation in the matter is on.