Bhubaneswar: Odisha was among four states where the Central Bureau of Investigation (CBI) conducted coordinated searches in connection with an alleged Rs 1,109-crore Canara Bank fraud involving Bhubaneswar-based Gupta Power Infrastructure Ltd., officials said on Sunday.
The agency searched six locations, including the residences of the company’s directors and its manufacturing units, and seized incriminating documents as part of its ongoing investigation.
The searches, conducted on July 18, were carried out across Odisha, West Bengal, Tamil Nadu and Uttarakhand following search warrants issued by the Special Judge, CBI, Bhubaneswar.
According to the CBI, the case pertains to the alleged defrauding of Canara Bank through fund-based and non-fund-based credit facilities availed by M/s Gupta Power Infrastructure Ltd.
The agency alleged that the company manipulated the value of its stock, inflated trade receivables and falsified financial statements to secure enhanced credit limits. It further alleged that the accused siphoned off and diverted loan funds and resorted to evergreening of loan accounts, causing a wrongful loss of Rs 1,109 crore to the public sector bank.
Searches were conducted at the residences of four company directors in Bhubaneswar, the company’s registered office in Kolkata, and its manufacturing units in Bhubaneswar, Tiruvallur in Tamil Nadu, and Kashipur in Uttarakhand’s Udham Singh Nagar district.
The CBI said incriminating documents were recovered during the searches. The seized materials are being examined as part of the investigation.
Further investigation into the case is underway, the agency added.
