CBI searches six locations in Rs 1,109-crore Canara Bank fraud case

The CBI conducted searches at six locations across four states in connection with an alleged ₹1,109-crore Canara Bank fraud involving Bhubaneswar-based Gupta Power Infrastructure Ltd. Investigators allege inflated financial records, fund diversion and loan account evergreening caused substantial losses

New Delhi: The CBI has conducted searches at six locations across four states including Odisha and West Bengal in connection with a Rs 1,109-crore bank fraud case against a Bhubaneswar-based power infrastructure company, officials said Sunday.

The operation conducted on Saturday covered residential premises of accused directors of Gupta Power Infrastructure Ltd in Bhubaneswar, company’s registered office in Kolkata and manufacturing facilities in Kashipur (Uttarakhand), Tiruvallur (Tamil Nadu), and Bhubaneswar.

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“The case pertains to alleged defrauding of Canara Bank to the tune of Rs 1,109 crore in connection with various fund-based and non-fund-based financial facilities availed by the accused company from the bank,” a CBI spokesperson said in a statement.

The CBI alleged that the accused manipulated the value of stocks and inflated trade receivables, falsified the company’s financial statements to obtain enhanced credit facilities, siphoned and diverted loan funds, and resorted to evergreening of accounts, thereby causing a wrongful loss to the bank.