CBI said the company misappropriated funds that were given on loan and fudged its account books to present a financially healthy picture before the lenders to avail funds, besides conversion of property
CHENNAI: Surana Power, a Chennai-based company, and its directors were booked on Tuesday by the Bank Frauds and Securities branch (BSFB) of CBI, Bengaluru, and fraud cell for allegedly defrauding a consortium of 10 banks led by IDBI bank.
The value of the fraud is pegged at Rs 1,500 crore, CBI said.
IDBI Bank had filed a complaint with the CBI. The bank has an outstanding on a loan of Rs 299.7 crore. The other institutions in the consortium which gave loans to the company are LIC, Punjab National Bank, State Bank of India, Dena Bank, UCO bank, IIFC (UK), L&T Infrastructure Finance Ltd, PTC India Finance Services and Allahabad Bank.
CBI said the company misappropriated funds that were given on loan and fudged its account books to present a financially healthy picture before the lenders to avail funds, besides conversion of property.
The fraud came to light when IDBI Bank received a forensic report from a resolution professional as part of corporate insolvency process in Chennai. The professional had carried out a forensic audit of the company from 2009-10 to 2017-18. The report disclosed certain wrongful transactions carried out by the company and also diversion of funds during the audit period, the bank said.
The loans were given for setting up a 455MW coal-fired power plant in Karnataka, CBI said.
The accused include Surana Power, a company on Whites Road, Royappetah, Gautham Raj Surana, Shantilal Surana, Vijayaraj Surana, Dinesh Chand Surana and unknown public servants and private persons.
In its complaint, IDBI Bank said the company may have possibly overstated the value of its power plant, diverted funds through round-tripping and manipulated award of contracts, among other issues.
Source: energy.economictimes.indiatimes
