The Central Bureau of Investigation (CBI) has initiated a case against M/s GTL Infrastructure Ltd (M/s GTIL) and unknown public servants in an alleged loan fraud case exceeding Rs 4,000 crore. The CBI launched a Primary Enquiry based on information about financial irregularities and misconduct concerning credit facilities obtained by M/s GTIL from a consortium of 19 banks and financial institutions.
Illegal activities by GTIL
"The investigation revealed that the company, promoted by Manoj Tirodkar, is engaged in constructing, operating, and maintaining passive telecom infrastructure sites capable of accommodating multiple service providers," stated a CBI official.
"Further investigation uncovered that in 2011, GTIL expressed its inability to service interest payments on the credit facilities obtained from various banks and financial institutions. It also indicated its inability to raise equity and experienced revenue shortfalls. As a result, the company was referred for Corporate Debt Restructuring (CDR). The CDR empowered group approved the restructuring package on 23.12.2011. However, the CDR failed, and subsequently, lenders decided to invoke Strategic Debt Restructuring (SDR) in 2016. During the CDR and SDR processes, out of the total outstanding loan of Rs 11,263 crores, a debt of Rs 7,200 crore was converted into equity shares, leaving the remaining outstanding amount at Rs 4,083 crores payable by M/s GTIL to the lenders (a consortium of 19 banks/FIs)."
GTIL diverted substantial portion of loan funds
The investigation uncovered that M/s GTIL had diverted a substantial portion of the loan funds through various vendors, which were essentially related parties with common directors and addresses with GTIL. CBI officials are scrutinizing the actions of 13 banks for allegedly assigning Rs 3,224 crore dues of the company to an asset reconstruction firm for Rs 1,867 crore without attempting to secure their loans with collateral securities. These officials were involved in negotiations related to GTIL's outstanding loans. The banks under investigation include Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of Baroda, ICICI Bank, Punjab National Bank, Oriental Bank of Commerce, Andhra Bank, Bank of India, Axis Bank, State Bank of India, United Bank of India, and Dena Bank.
