The CBI has conducted searches at four locations in Mumbai after registering an FIR against Unity Infraprojects Ltd, its then CMD Kishore Krishnarao Avarsekar and others for allegedly defrauding a consortium of banks to the tune of Rs 3,847.58 crore, officials said on Monday.
The CBI took action on a complaint of the SBI, one of the consortium members which alleged that the fraud took place at its Commercial Branch in Mumbai where the accused persons siphoned the ”Bank’s funds by doing fictitious transactions, manipulated and fudged books of accounts with an objective to defraud and cheat the bank and to gain unlawfully at the cost of the Bank’s funds”.
The officials said searches were conducted recently at the premises of the accused.
The account of the 44-year-old infrastructure company, which had taken over Rs 3,800 crore from 23 lenders against moveable and non-moveable assets besides personal and corporate guarantees, had become a non-performing asset on June 24, 2014. Five years later, it was declared a fraud after forensic audit pointed irregularities.
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The bank alleged that the fraud came to light in a forensic audit conducted by BDO India LLP, which submitted its report on September 25, 2019.
The report found fictitious transactions, improper adjustment entries passed to accommodate fictitious accounting entries to defraud the bank by fudging the data, and diversion of funds through non-consortium accounts, among others.
It also cited unexplained excess pay-outs with intentions to siphon off bank funds and related party transactions to divert borrowed fund.
The agency has registered the case against the company, former chairman and former directors and executives under IPC sections of criminal conspiracy (120B), cheating (420) and provisions of Prevention of Corruption Act.