CBI raids this firm in one of the largest scams by infra player, several incriminating docs found
New Delhi: Central government probe agency CBI has booked Hyderabad-based company ‘Coastal Projects Ltd’ and its officials including the chairman for allegedly defrauding banks to the tune of Rs 4737 crore.
The consortium of banks cheated by the company is led by SBI. Others in the consortium include Canara Bank, Bank of Maharashtra, IDBI, Bank, Bank of Baroda, Union Bank of India, EXIM Bank and Punjab National Bank.
CBI said that the company allegedly colluded with ‘unknown public servants and others’ for defrauding the banks. The account of the company became NPA in January 2017 retrospectively with effect from 28 October 2013. It was declared as fraud by the banks in February 2020.
The company allegedly resorted to fabrication of its accounts, fudging financials to show unrealizable invoked bank-guarantees as realizable amount and investments. It even gave wrong details of promoters’ contribution in the company. It also showed receivables from related entities as investments to defraud banks.
The residence and offices of the accused have been raided by CBI in Hyderabad and Vijayawada and many incriminating documents have been found, CBI said in a statement.