CBI FIR against Mumbai-based Unity Infraprojects and its promoter for defrauding SBI, 15 others of Rs 3,800 crore

The UIL was involved in the revamp of Mantralaya building after it was gutted in a fire in June 2012 and it has also reportedly constructed Thackeray family bungalow Matoshree at Kalanagar, Dadar TT flyover and CSMT subway among others.

According to the CBI, the complaint named M/s Unity Infraprojects Limited (UIL), Kishore Avarsekar, chairman – managing director and promoter / guarantor of UIL, Abhijit Avarsekar, vice-chairman and promoter/ guarantor of UIL, Ashish Kishore Avarsekar, executive director and promoter/ guarantor of UIL and Pushpa Kishore Avarsekar, whole time director and promoter/ guarantor of UIL and five other entities.

The complaint prima facie reveals that the accused entered into a criminal conspiracy with unknown public servants and others, to cheat SBI and 15 other banks to the tune of Rs 3,847.58 crore, the FIR stated.

According to the complaint, the UIL has been banking with SBI since 2004 and the “company had availed of various fund-based and non-fund-based credit facilities aggregating to Rs 703.63 crore from SBI within total limits of approximately Rs 3,800 crore from a total of 23 lenders”.

It added that “the account became a non-performing asset (NPA) on 24.06.2014… was classified as fraud by the fraud identification committee in a meeting held on 08.11.2019”.

As per the complaint letter given by SBI to the CBI, the accused siphoned bank funds by carrying out fictitious transactions and fudging books of accounts. “The fraud came to light when a forensic audit conducted by M/s BDO India LLP submitted their reports on 25.09.2019,” the letter reads.

The gist of the allegations made in the complaint are that UIL had been sanctioned credit / loan facilities, fund-based as well as non-fund based, of approximately Rs 3,800 crore by SBI and other consortium member banks.

“The said company, by way of fictitious transactions undertaken by it through fraudulent Letter of Credit trade model, improper adjustment entries by fudging data, diversion of funds through non-consortium accounts, diversion of funds through related parties and unexplained excess pay-outs, siphoned off the funds of State Bank of India and other consortium banks, and thereby cheated these banks,” the FIR mentioned.

The FIR adds that the complaint, prima facie, discloses commission of offences of criminal conspiracy, cheating and criminal misconduct, punishable under sections 120-B of the Indian Penal Code read with section 420 and section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988. The CBI will be conducting further investigation in the matter.

While the total number of lenders is 23, the complaint states that only 16 banks gave their estimated loss and mandate to file the complaint. Some of the key lenders include Bank of Baroda, Central Bank of India, ICICI Bank, Indian Bank and Union Bank of India among others.

Calls made to numbers listed on the company’s website and an e-mail seeking their response by The Indian Express went unanswered.