CBI books Hyderabad-based firm for Rs.4,736.57 crore fraud

The case was booked based on a complaint received from the State Bank of India on behalf of other member banks - IDBI, Canara Bank, Bank of Baroda, Bank of Maharashtra, Punjab National Bank, Union Bank of India and Exim Bank

Hyderabad: The Central Bureau of Investigation (CBI) has registered a case against the city-based Coastal Projects Limited, including against its chairman and others, for allegedly causing a loss of Rs.4736.57 crore to a consortium of banks.

The case was booked based on a complaint received from the State Bank of India on behalf of other member banks – IDBI, Canara Bank, Bank of Baroda, Bank of Maharashtra, Punjab National Bank, Union Bank of India and Exim Bank, according to a CBI press release.

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It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of banks. The account became Non-Performing Asset (NPA) on January 25, 2017 with retrospective effect from October 28, 2013 and reported as fraud on February, 20,2020.

It was also alleged that the borrower company based at Hyderabad during the period 2013-18 had indulged in fabrication of books of accounts, manipulations of t financials to show unrealizable invoked bank guarantee amounts as realizable investments, falsified details of promoters’ contribution, converted receivables from related parties to investments to siphon off banks funds, cheating the SBI and other consortium member banks.

Searches were conducted at the residential and official premises of the accused at Hyderabad and Vijayawada leading to recovery of several incriminating documents and other material evidence.

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