Bank loan fraud: ED searches multiple locations of telecom services company

According to the case, the accused company allegedly borrowed loans from a consortium of banks led by the IDBI Bank between 2009 and 2012.

The CBI’s case was based on the findings of the forensic audit, which found that the company had Rs 1,398 crore outstanding from the vendors as on March 31, 2012 of which Rs 1,142 crore was given as advance to the vendors in FY11, but no equipment was received against the payments.

As per the CBI, the accused company fraudulently received various credit facilities and diverted bulk of the loan amount to itself, in a conspiracy with vendors and bank officers.

“There were multiple issues with the lenders’ tracking of the end-use of the loans they sanctioned, and that there was a reluctance to take remedial action in time,” CBI FIR states.

The CBI booked the accused under cheating and Prevention of Corruption Act, 1988 and the ED is now investigating the money laundering part.