Rs 2,435 cr bank fraud case: CBI books ex-CG Power CMD

CBI registers case against private firm for defrauding SBI, other banks of Rs 2,435 crore

It was alleged that the accused had cheated the SBI and other consortium member banks by way of diversion of bank funds

The SBI's Industrial Finance branch in Mumbai lodged a complaint on May 28. Credit: Reuters Photo

The Central Bureau of Investigation (CBI) has registered an FIR against billionaire-businessman Gautam Thapar and his company CG Power and Industrial Solutions for causing a loss of a whopping Rs 2,435 crore to the State Bank of India (SBI) and other consortium banks.

After the losses came to light, the SBI, Industrial Finance Branch, Mumbai, lodged a complaint along with a detailed report to the CBI on May 28, 2021.

On Tuesday, the CBI registered an FIR against CG Power and Industrial Solution Ltd, Gautam Thapar, the then CMD, KN Neelkanth, the then CEO and MD, Madhav Acharya, the then ED and CFO, B Hariharan, the then Director, Omkar Goswami, the then Non-Executive Director, Venkatesh Rammoorthy, the then CFO and unknown public servants and others.

The CG Power and Industrial Solution Ltd, earlier known as Crompton Greaves Ltd, is an Indian multinational engaged in designing, manufacturing, and marketing of products related to power generation, transmission, and distribution.

It was alleged that the accused had cheated the SBI and other consortium banks including Bank of Maharashtra, Axis Bank, Yes Bank, Corporation Bank, Barclays Bank, IndusInd Bank among others by way of diversion of bank funds, sham transactions with related parties, borrowing funds from the bank by misrepresentation.

They have also been accused of falsifying/fabricating books of accounts, entries, vouchers, and financial statements; furnishing false, incorrect or misleading information; siphoning off funds including various loan proceeds.

“The allegations were based on a forensic audit report. Searches are being conducted at the premises of the accused including said private company at Mumbai, Delhi and Gurugram,” CBI officials said on Thursday.

This is a new case against Thapar, who was booked earlier in Rs 466 crore fraud case in a Yes Bank scam case.

The complaint by Suresh Kumar Pareek, Branch Head, SBI, Industrial Finance Branch at Bandra East in Mumbai to the CBI headquarters in New Delhi, pointed out that SBI and 12 other banks were defrauded.

The CBI FIR said that the accused between 2015 and 2019 allegedly cheated the banks by way of diversion of bank funds and sham transactions with related parties.

The SBI complaint has pointed out that during August 2019, the board of the company disclosed to the Sebi about several suspicious, unauthorised transactions including previously undisclosed debt in the balance sheet.

As per the board of the company, the total liabilities of the company and the group may have been potentially understated by approximately Rs 1,053.54 crore and Rs 1,608.17 crore, respectively, as of March 31, 2018, and by Rs 601.83 crore and Rs 401.83 crore, respectively, as of April 1, 2017.

The SBI complaint said that advances to related and unrelated parties of the company and the group may have been potentially understated by Rs 1,990.36 crore and Rs 2,806.63 crore, respectively, as of March 31, 2018, and by Rs 1,479.34 crore and Rs 1,331.47 crore, respectively, as of April 1, 2017.

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