The Central Bureau of Investigation (CBI) in India has conducted searches in three cities against IL&FS Energy Development Company Limited in connection with an alleged fraud of Rs 100.30 crore in Punjab National Bank. This followed the registration of an FIR against the company and its directors for alleged criminal conspiracy, cheating, and under provisions of the Prevention of Corruption Act for diversion of funds and other irregularities in the utilization of loans availed from the bank.
As part of this investigation, searches were conducted at office and residential premises of the accused, including the private company in New Delhi, Dehradun (Uttarakhand), and Mumbai (Maharashtra). These searches led to the recovery of incriminating documents and articles.
It was alleged that the accused entered into a conspiracy to cheat the Punjab National Bank (erstwhile e-United Bank of India). In pursuance of this conspiracy, the accused allegedly misappropriated the sanctioned credit facilities by way of cheating, utilization of loan funds contrary to the sanction terms and conditions, diversion of sale proceeds to related and sister concern companies, etc., and thereby caused a loss to the tune of Rs. 100.03 crore plus interest to the bank.
The CBI said that e-United Bank of India had sanctioned a term loan of Rs 100 crore to the company on December 28, 2017, under a multiple banking arrangement. The account turned into a non-performing asset (NPA) on December 31, 2018.
To ascertain if there had been a fraud, a forensic audit was conducted through Haribhakti and Co. for the period from December 1, 2013, to April 30, 2020. The forensic auditor submitted its final report on March 9, 2021, that red-flagged several irregularities, including the potential diversion of funds of Rs 576 crore.
The potential diversion of funds to the extent of Rs. 576.07 crore has been observed by the forensic auditor. However, PNB is concerned with the facilities sanctioned to the tune of Rs 100 crore, the FIR said.
The CBI has booked the accused for alleged criminal conspiracy, cheating, and under provisions of the Prevention of Corruption Act. They are being investigated for diversion of funds and other irregularities in the utilization of loans availed from the bank.
