Debt-ridden power firm Gupta Power faces fresh CBI heat
The Central Bureau of Investigation (CBI) has conducted searches at six locations across four states, including Odisha and West Bengal, in connection with a Rs.1,109-crore bank fraud case against a Bhubaneswar-based power infrastructure company, officials said Sunday. The operation conducted on Saturday covered the residential premises of accused directors of Gupta Power Infrastructure Ltd in Bhubaneswar, the company’s registered office in Kolkata, and manufacturing facilities in Kashipur (Uttarakhand), Tiruvallur (Tamil Nadu), and Bhubaneswar.
“The case pertains to alleged defrauding of Canara Bank to the tune of Rs.1,109 crore in connection with various fund-based and non-fund-based financial facilities availed by the accused company from the bank,” a CBI spokesperson said in a statement.
The CBI alleged that the accused manipulated the value of stocks and inflated trade receivables, falsified the company’s financial statements to obtain enhanced credit facilities, siphoned and diverted loan funds, and resorted to evergreening of accounts, thereby causing a wrongful loss to the bank.
Gupta Power Infrastructure Lt is also classified as a Large Defaulter by Punjab National Bank for non-payment of loans of more than Rs.809 crore. The debt-stricken company is now facing insolvency cases and recovery cases filed by Canara Bank and Punjab and National Bank.
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never in the Indian history so many ED raids on establishments. Good sign of positive action & committment to free India from corruption