A Mumbai company is accused of executing a bank fraud involving thousands of crores. The CBI filed four cases of fraud against the company's directors and guarantors. Allegations state that the company manipulated its way to defraud a whopping 4957.31 crores. Raids across Delhi and Mumbai lead to the recovery of 90,413 US dollars and 1.99 crore rupees.
Source: aajtak
Reports suggest that the company was involved in designing, engineering, and constructing complex projects such as water facilities, community housing, precast design and construction, road building, and urban infrastructure.
The company allegedly distributed funds to related parties and subsidiaries after acquiring loans, later writing off these advances as losses.
Company Accused of Inflating Turnover
It's also alleged that the company inflated its turnover through bogus sales and purchases and exaggerated the scope of work to avail credit facilities from lending banks, without proper documentation for major sales transactions. Raids were conducted across 12 locations, including Mumbai, Daman, Kutch, Noida, and Delhi, with significant funds recovered from Sahdev Projects Pvt. Ltd in Andheri, Mumbai.
Four Cases Filed Against These Companies
Complaints lodged by Canara Bank, Punjab National Bank, IDBI Bank Limited, and Exim Bank led to CBI filing four cases against a private company named PSL Limited, its directors, MDs, and unspecified public servants. The case accuses the company of diverting sanctioned loan funds meant for-project-operations into other ventures.
Source: aajtak
The third case involves the IDBI Bank Limited, accusing the company of misappropriating funds from a 29.06 crore loan for projects for unrelated purposes. Similarly, the Exim Bank records a fraudulent transaction of 105.92 crores, where funds meant for project executions were knowingly diverted for different intentions.
