In what could be the biggest bank fraud case reported so far, the Central Bureau of Investigation has booked Transstroy India Ltd (TIL), Chairman and MD Sridhar Cherukuri and directors for alleged misappropriation and diversion of Rs 7,926.01 crore from 14 banks.
Former Telugu Desam Party MP Rayapati Sambasiva Rao, who is also the company’s current additional director and a promoter, has also been booked by the CBI. Sambasiva Rao was a three-time Lok Sabha member and one-time Rajya Sabha member.
The top bank fraud cases so far were Gitanjali Gems (promoted by Mehul Choksi) Rs 5,044 crore, Rei Agro Ltd Rs 4,197 crore, Winsome Diamonds (promoted by Jatin Mehta) Rs 3,386 crore and Ruchi Soya Industries Rs 3,225 crore.
According to Canara Bank, of the Rs 7,926.01 crore fraud amount, the amount of lending made by all the 14 consortium members is Rs 4,765.70 crore. “The remaining amount was lent under Multiple Banking Arrangement. Out of this, exposure of Canara Bank is Rs 678.28 crore only,” the bank said.
According to banking sources, the additional funding was done by five banks without informing the consortium. Banks also found that the company donated gold jewellery worth over Rs 5 crore to temples purchased with the bank loan. “The company is under the process of liquidation. The company has already been declared as willful defaulter on December 26, 2018,” Canara Bank said. The bank has already made 100 per cent provision on the account as per the RBI rules, it said.
According to the CBI, it was alleged that the accused was involved in falsification and fabrication of books of accounts, fudging of stock statements, tampering of balance sheets and round tripping of funds.
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