The Central Bureau of Investigation (CBI) has registered FIR against directors of GTL Ltd and others for allegedly defrauding a consortium of banks to the tune of crores of rupees. The company was availing the credit facilities of over Rs 4760 crore from a consortium of 24 banks, lDBI being the lead bank and the agency has alleged in its FIR that loan facilities were obtained by misrepresentation that all such loan amounts shall be utilized for the purpose of business activity of M/s GTL Limited but soon after disbursement, majority of the loan amount was not utilized for the purpose for which it was granted.
According to the CBI, a written complaint has been submitted by Mr Trayambak Dutt Tripathi, Inspector, CBl, New Delhi against M/s GTL Ltd., its unknown Directors, Unknown Bank Officers, Public Servants and Unknown Private Persons including vendors and beneficiary group companies pursuant to a Preliminary Enquiry (PE) conducted by him.
"That the complaint has revealed that M/s GTL Ltd. had fraudulently obtained various credit facilities from consortium banks and subsequent thereto diverted, siphoned off the majority of the loan amount in conspiracy with its vendors, unknown bank officers, etc. The various vendor companies were created and operated with the malafide intention of siphoning off the bank's short-term funds and other credit facilities in connivance with borrower i.e. GTL Limited," the CBI alleged in its FIR registered recently.
GTL Limited was incorporated on 23rd December 1987 as a private limited company and was converted into a public limited company on 12th September, 1991. lt is engaged in the business of providing telecom network deployment services, operations and maintenance services, professional services, network planning and design services and energy management services to telecom
operators in India and international markets.
During the course of enquiry, it is revealed that besides generating Rs 1400 Crores from Non-convertible Debentures (NCDs), M/s GTL Ltd availing the credit facilities of over Rs 4760 crore from consortium of 24 banks, lDBI being the lead bank.
"Enquiry has revealed that Short Term Loan amount and other loan facilities were obtained by M/s. GTL Limited for the business activities. Such facilities were obtained by misrepresentation that all such loan amount shall be utilized for the purpose of business activity of M/s GTL Limited but soon after disbursement, majority of the loan amount was not utilized for the purpose for which it was granted. Thus, M/s. GTL Limited cheated the lenders and thereafter misappropriated the funds of the lenders," the agency alleged in its FIR.
"Enquiries have revealed that GTL Limited was extending advances to vendors year on year without supply of material/goods. And eventually these advances were provisioned. Enquiry has prima facie revealed that vendor companies were created & operated with the malafide intention of siphoning off the bank short term funds in connivance with borrower i.e. GTL Limited as a substantial portion of the advances have been provisioned and portion of the loan funds have been routed back to GTL Limited bv the vendor entities," the CBI alleged in its FIR.
