CBI Registers 2 Cases Against IL&FS Subsidiaries For Defrauding Banks

The Central Bureau of Investigation (CBI) has registered two separate cases against IL&FS subsidiaries and its directors for allegedly duping banks to the tune of Rs 120.03 crore. The FIR accessed by ANI reads that the general manager of Punjab National Bank registered a complaint with CBI alleging that the borrower Company IL&FS Energy Development Company Ltd. (IEDCL) and its Directors, namely, Hari Sankaran, Late Ravi Parthasarathy (since died), Ramesh Chander Bawa, Arun Kumar Saha, Sunil Kumar Wadhwa and Anoop Seth and another unknown private person (s) and unknown public servant(s) entered into a criminal conspiracy.

Misappropriation of funds

They cheated Punjab National Bank (e- United Bank of India) and the accused persons misappropriated the sanctioned credit facilities by way of cheating, utilisation of loan funds was contrary to the sanction terms and conditions, diversion of sale proceeds to related/ sister concern companies, etc. and thereby caused wrongful loss to the tune of Rs 100.03 Cr plus to the Bank and corresponding wrongful gain to themselves.

Unauthorised transactions

In another case, the CBI received a complaint against IL&FS Transportation Network Limited (ITNL) from Union Bank of India, Mumbai, alleging therein that the company IL&FS Transportation Network Limited (ITNL) and its directors, Hari Shankaran, Arun Saha, Ravi Parthsarathi (deceased), Mukund Sapre, and K Ramchand, entered into a criminal conspiracy to cheat Union Bank of India.

The accused persons misappropriated the sanctioned credit facilities by cheating, diversion of funds, unauthorised circular transactions between related/sister companies, misrepresentation of books of income and expenditures, etc., and thereby caused a wrongful loss of Rs 20 crore plus interest to the Union Bank of India and a corresponding wrongful gain to themselves.