Saradha Group spun web of loan transfers: RoC report

However,it is the balance sheet of another group company Saradha Construction,the second-largest company in the group that provides details about inter-group companies financial transactions.

During 2011-12,Saradha Construction received long-term advances of Rs 40 crore from Saradha Realty. Subsequently,in a series of transactions,Saradha Construction lent Saradha Realty around Rs 30 crore,thus leaving it with a balance of Rs 10 crore.

However,this Rs 10 crore was never spent by Saradha Construction in creating any business asset but was instead lent to other group companies where there were no business activities.

The RoC report noted that despite the precarious financial health of Saradha Realty as evident from its eventual debacle,it diverted Rs 10 crore to its associate company Saradha Construction,indicating clear misutilisation of resources. FE