CBI Conducts Searches in Hyderabad in ₹4,736.5 Crore Loan Fraud Case

Strategic Insights -

The Central Bureau of Investigation (CBI) conducted searches at several locations in Hyderabad on Saturday, as part of a ₹4,736.5 crore loan fraud case against Coastal Projects Limited, a city-based company, and its promoters. The company had set up hydroelectric projects and allegedly defrauded a consortium of banks led by State Bank of India, as well as several other major banks. The CBI alleged that the accused individuals and bank officials conspired to commit the fraud, which resulted in the account becoming a non-performing asset (NPA) in October 2014 and being declared fraudulent in February 2020.

Key Takeaways:

  • The CBI has accused Coastal Projects Limited, a city-based company, and its promoters of defrauding a consortium of banks led by State Bank of India in a ₹4,736.5 crore loan fraud case.
  • The company allegedly falsified its books of accounts and manipulated its financials from 2013 to 2018, resulting in the account becoming a non-performing asset (NPA) in October 2014.
  • The CBI has named several individuals, including Sabbineni Surendra, the chairman and managing director of Coastal Projects, and other key officials, as part of the alleged conspiracy.
  • Searches were conducted at several locations in Hyderabad and Vijayawada, and officials recovered several incriminating documents and other evidence.
  • The banks allegedly duped by the accused include IDBI Bank, Canara Bank, Bank of Baroda, Bank of Maharashtra, Punjab National Bank, Union Bank of India, and EXIM Bank.

Statistics:

  • ₹4,736.5 crore: The total amount of the loan fraud allegedly committed by Coastal Projects Limited and its promoters.
  • 2013-2018: The period during which Coastal Projects allegedly falsified its books of accounts and manipulated its financials.
  • October 2014: The month in which the account became a non-performing asset (NPA).
  • February 2020: The month in which the account was declared fraudulent by the banks.
  • 9: The number of bank officials allegedly involved in the conspiracy with the accused.

Sources:

  • CBI probe into ₹4,736.5 crore loan fraud: www.timesofindia.indiatimes.com

External reference: https://www.timesofindia.indiatimes.com/india/cbi-probe-into-rs-4736-5-crore-loan-fraud/articleshow/91874805.cms