Hyderabad: CBI books Coastal Projects Limited for duping banks of Rs 4,736 cr

Hyderabad: The Central Bureau of Investigation (CBI) has registered a case against the city-based firm, Coastal Projects Limited, and its chairman and others for allegedly causing a loss of Rs 4,736.57 crore to a consortium of banks.

According to a press release issued by the CBI, the case was booked after a complaint was received from the State Bank of India on behalf of other member banks, i.e., IDBI bank, Canara Bank, Bank of Baroda, Bank of Maharashtra, Punjab National Bank, Union Bank of India and Exim Bank.

It has been alleged that the accused in connivance with unknown public servants and others defrauded the banks and obtained huge loans, but failed to repay the loans due to which the account became a Non-Performing Asset (NPA) on January 25, 2017 and reported as fraud on February 20, 2020.

It has also been alleged that the borrower company based at Hyderabad during the period 2013-18 had indulged in fabrication of books of accounts, manipulations of financial transactions to show unrealisable invoked bank guarantee amounts as realisable 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.

Based on the complaint filed by the banks, the CBI conducted searches at the residential and official premises of the accused at Hyderabad and Vijayawada leading to recovery of several incriminating documents and other material evidence. Further investigation is going on, read the CBI release.