A day after the Central Bureau of Investigation (CBI) filed a case against Hyderabad-based company Transstroy (India) Ltd for allegedly cheating a consortium of banks of Rs7,926 crore, the Canara Bank clarified that it has an exposure of Rs678.28 crore in the accused company.
In a statement, the Canara Bank said, "The bank clarifies that it has an exposure of Rs678.28 crore in the account of Transstroy India Ltd, reported as fraud to RBI on February 10 this year where 100% provision has been made in the account."
It said that Transstroy India Ltd (TIL), established in 2001, is in the business of developing roads, bridges, tunnels, highways etc.
"The company was enjoying limits from various banks under multiple banking arrangement from 2001. Subsequently, a consortium with Canara Bank as a leader and 13 other banks was formed in 2013 and the total limit sanctioned was Rs4,765.70 crore and the share of Canara Bank was only Rs678.28 crore," it said.
It said that out of the Rs7,926.01 crore fraud amount, the amount of lending made by all the 14 consortium members was Rs4,765.70 crore. The remaining amount was lent under multiple banking arrangements. Out of this, exposure of Canara Bank was Rs678.28 crore only, it said, adding that the case was referred to the NCLT Hyderabad which admitted it on 10 October 2018.
The company is under the process of liquidation. It was declared as wilful defaulter on 26 December 2018 by Canara Bank, it added.
The response of Canara Bank came a day after the CBI registered a case against Transstroy (India) Ltd, its chairman and managing director Cherukuri Sridhar, additional directors Rayapati Sambasiva Rao and Akkineni Satish, unknown public servants and unknown others on a complaint from Canara Bank.
A CBI official said that it was alleged that the private firm based in Hyderabad and its directors had availed credit facilities on multiple banking arrangements. The consortium was formed with other banks led by Canara Bank, the official said.
It was further alleged that the accused had been involved in falsification of books of accounts, fudging of stock statements, tampering of balance sheets, round-tripping of funds etc.
The official said that the accused misappropriated bank funds and diverted the loan amounts sanctioned and caused a loss of Rs7,926.01 crore to Canara Bank and other member banks. The account had become a non-performing asset (NPA) and the fraud was reported.
"Searches were conducted at the premises of the company and other accused in Hyderabad and Guntur, which led to the recovery of incriminating documents," the official said.
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