CBI lodges case against IL&FS Transportation network, directors for alleged bank fraud

CBI has filed an FIR against IL&FS Transportation Network Ltd and its directors on charges of defrauding 19 banks of Rs 6,524 crore

New Delhi: The Central Bureau of Investigation (CBI) has filed an FIR against IL&FS Transportation Network Ltd and its directors on charges of defrauding 19 banks of Rs 6,524 crore between 2016 and 2018.

The banks affected by this alleged fraud include the Punjab National Bank, the Bank of India, the State Bank of India, the Axis Bank, the Yes Bank, and several others.

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IL&FS Transportation Network Ltd is a subsidiary of IL&FS, which had previously filed for bankruptcy in 2018.

A source said that a written complaint in this regard was received on May 26 at the Bhopal office from Bhavendra Kumar, Chief General Manager, Canara Bank Circle Office, New Delhi, alleging that IL&FS Transportation Network Ltd (ITNL), with an office in Bandra (East) Mumbai, and its directors and CFO, namely Karunakaran Ramchand, Deepak Das Gupta, Mukund Gajanan Sapre, and Dilip Lalchand Bhatia, entered into a criminal conspiracy to cheat 19 banks under multiple banking arrangements led by Canara Bank.

“The accused misappropriated the sanctioned credit facilities by engaging in cheating, diversion of funds, circular transactions between related sister concerns, and misrepresentation of books of income and expenditures. Through these corrupt practices, they caused a loss of Rs 6,524 crore to the banks,” read the FIR accessed by IANS.

The CBI lodged a case under Section 120-B of the IPC read with Section 420 of the IPC and Sections 13(2) and 13(1)(d) of the PC Act against IL&FS Transportation Network Limited and its directors and CFO Ramchand, Gupta, Sapre, and Bhatia.
Further investigations are on.