The Central Bureau of Investigation (CBI) has registered a case against Hyderabad-based Coastal Projects Ltd. and others including its Chairman and Managing Director and unknown public servants on a complaint from State Bank of India (lead bank of the consortium) for causing an alleged loss of Rs 4736.57 crore to the banks. The CBI on Saturday conducted searches at the residential and official premises of the accused entities and individuals at Hyderabad and Vijayawada which led to recovery of several incriminating documents and other material evidence. “It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of Banks. The account became NPA on 25.01.2017 with retrospective effect from 28.10.2013 and reported as fraud on 20.02.2020,” the CBI said in a statement.
It was further alleged that the borrower company, during the period 2013-18, had indulged in falsification/fabrication of books of accounts, manipulations/falsification of the financials to show unrealizable invoked bank guarantee amounts as realizable investments, falsified details of promoters’ contribution, converted receivables from related parties to investments to siphon off the banks funds, cheating the SBI and other consortium member banks, it said.