CBI registers FIR over allegations of bank fraud of Rs 4,957 crore

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The Central Bureau of Investigation (CBI) has registered a case against a Mumbai-based private company and others including its directors and others on a complaint by Bank of Baroda over allegations of bank fraud of Rs. 4957 .31 crores to the consortium of 17 banks.

The defendants named in the FIR have been identified as M/s Pratibha Industries Limited, Mumbai; Ajit Bhagwan Kulkarni, Ravi Kulkarni, Sunanda Datta Kulkarni, Sharad Prabhakar Deshpande, all are directors and guarantors of the company. The account of a said private company was classified as NPA (non-performing asset) as of December 31, 2017. Subsequently, the accounts were also declared fraudulent by members of the consortium banks.

The company was in the development of infrastructure projects, which included the design, engineering and execution or construction of complex and integrated water transmission, distribution, water treatment plants , mass housing projects, prefabricated design and construction, road and urban infrastructure construction, etc.

It was further alleged that the defendant misappropriated a huge sum of money from the borrowing company to its related parties and subsidiaries and that subsequently these advances were written off by the company.

It was also alleged that the company entered into sham sell and buy transactions in order to inflate its revenue. Further, to avail credit facilities from lending banks, work in progress would have been inflated and a huge amount of vendor liability was directly adjusted to the customer account without having any supporting documentation for it.

Searches were carried out today at four locations, including Mumbai and Thane, resulting in the recovery of several incriminating documents and articles.

Further investigation is underway.

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