Mumbai: The Central Bureau of Investigation (CBI) has registered a case against a foreign-based company, its directors, a Mumbai-based subsidiary company and others for allegedly causing a loss of ₹239 crore to the India Exim Bank.
The Mumbai-based company is the largest build–operate–transfer (BOT) road asset owner in India and is also a market leader in the transport infrastructure sector with a presence also in metro rail, city bus services and border check-posts.
According to the CBI, a written complaint was received on September 20 from Sikha Saurabh, Assistant General Manager, India Exim Bank, alleging therein that the accused, unknown public servants and private persons had entered into a criminal conspiracy to cheat the bank. The bank had sanctioned a Non-fund (NFB) to the foreign-based company, which is a step-down subsidiary company of the Mumbai-based company in September 2015, for securing and executing overseas contracts.
“The bank in its complaint to the CBI stated that the fraud might have interstate and international ramifications. In pursuance of the criminal conspiracy, the accused misappropriated the sanctioned credit facilities by committing cheating, diversion of funds etc and thereby caused a wrongful loss of Rs239.84 crore approximately as on August 31 to the bank during 2016-2019 and corresponding undue gains to themselves,” said a CBI official.
Forensic audit
A forensic audit of the foreign-based company’s account revealed certain adverse observations such as limited progress in road construction, improvement activities undertaken under the project, utilisation of project advances and current financial investments with group companies by Joint Ventures.
The bank has requested to investigate the involvement of unknown public servants and others in the fraud. The CBI has registered a case on Friday under sections 120B. (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code and relevant sections of the Prevention of Corruption Act.
