The Central Bureau of Investigation (CBI) conducted searches in multiple locations at the offices and residential premises of New Delhi-based Bhushan Power & Steel Limited in connection with Rs 2,348 crore bank fraud case. The searches were conducted in Delhi-NCR, Chandigarh, Kolkata and Odisha.
The searches were conducted at the residential premises of the company’s directors, promoters and their associates in the bank fraud case. The agency has booked the firm, it’s directors, unidentified public servants and other private persons in the case.
According to the investigation agency, Bhushan Power & Steel Limited misused the funds by fraudulently diverting Rs 2,348 crore (approx) from the loan account of Punjab National Bank (New Delhi and Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (Kolkata) into the accounts of various shell companies without any obvious purpose.
Bhushan Power & Steel Limited diverted the funds through its directors and staff.
“It was further alleged that the Bhushan Power & Steel Limited availed various loan facilities from 33 banks/financial institutions between 2007 and 2014 to the tune of Rs 47,204 crore (approx.) and defaulted on repayments. Subsequently, the lead bank PNB declared the account as non-performing asset followed by other banks and financial institutions,” said the CBI.
According to probe agency, the accused entered into a criminal conspiracy with unknown public servants of banks and others to cheat banks, financial institutions and the government exchequer.
“The accused dishonestly and fraudulently diverted huge amount of bank funds through companies/shell companies/entities etc and deliberately defaulted in repayment and also claimed inadmissible CENVAT [Central Value Added Tax] credit,” said an officer of the CBI.
According to the FIR lodged by CBI, the accused used the bank funds for the purpose other than sanctioned by the bank by committing forgery, using forged documents and falsifying the accounts causing loss to the tune of Rs 2,348 crore to the lending banks, financial institutions and government exchequer.
During searches, the CBI recovered various documents pertaining to the case, sources said.