The Central Bureau of Investigation (CBI) has registered an FIR against Chandra Proteco Limited and its directors over an alleged bank fraud that caused a loss of ₹210.13 crore to five banks, the agency said on Thursday, The Hindu reported.
The CBI also searched several premises linked to the company's directors in Prayagraj and seized financial documents, it said in a statement.
What the CBI alleges
The FIR was registered on a complaint by Indian Bank against the company, its directors Ranjeet Gupta, Anilesh Gupta and Aparna Gupta, unknown public servants and unknown persons. It covers cheating and offences under the Prevention of Corruption Act.
"It is alleged that the accused persons entered into a criminal conspiracy, obtained cash credit facility, term loan and letters of credit amounting to ₹541.46 crore from a consortium of six banks led by the Indian Bank," the CBI said.
The agency said the company was engaged in "systematic financial manipulations, including operating clandestine accounts with non-consortium banks, and devolving letters of credit through entities sharing common directors/sister concerns". It alleged that the company did not use the money for the purposes it was sanctioned for and siphoned it off through associate companies.
These are allegations in an FIR; they have not been tested in court. The report did not carry a response from the company or its directors.
Why it matters
The naming of "unknown public servants" in the FIR means the CBI will also look at whether bank officials were involved in sanctioning or monitoring the loans. Losses in consortium lending like this are borne by public sector banks such as Indian Bank, which lead such consortiums.