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The Central Bureau of Investigation (CBI) has carried out searches at six locations across four states in connection with an alleged INR 1,109 crore bank fraud involving Bhubaneswar-based Gupta Power Infrastructure Ltd. The agency alleges that the company secured higher credit facilities from Canara Bank by manipulating financial records, inflating stock values and trade receivables, and diverting loan funds. Searches were conducted at the company's offices, manufacturing units and the residential premises of its directors as part of the ongoing investigation into the alleged financial irregularities.
The Central Bureau of Investigation (CBI) conducted searches at six locations across four states in connection with an alleged INR 1,109 crore bank fraud involving Bhubaneswar-based Gupta Power Infrastructure Ltd. The search operation was carried out over the past week at multiple premises linked to the company and its directors, officials said.
The searches covered the residential premises of the accused directors in Bhubaneswar, the company's registered office in Kolkata, and its manufacturing facilities located in Kashipur, Uttarakhand; Tiruvallur, Tamil Nadu; and Bhubaneswar, Odisha.
According to the CBI, the case relates to the alleged defrauding of Canara Bank of INR 1,109 crore through various fund-based and non-fund-based financial facilities availed by Gupta Power Infrastructure Ltd.
The investigating agency alleged that the company manipulated the value of its stock and inflated trade receivables to present a stronger financial position. It further claimed that the company's financial statements were falsified to obtain enhanced credit facilities from the bank.
The CBI also alleged that loan funds were siphoned off and diverted for purposes other than those for which they were sanctioned. Additionally, the agency accused the company of resorting to evergreening of loan accounts, a practice in which fresh loans are used to repay existing dues to prevent accounts from being classified as non-performing assets (NPAs), resulting in a wrongful loss to Canara Bank.
The searches form part of the CBI's ongoing investigation into the alleged financial irregularities and suspected diversion of bank funds. The agency is expected to examine documents, financial records and electronic evidence collected during the operation as part of its probe.
Large-value bank fraud cases involving alleged diversion of funds and manipulation of financial records have remained a key focus area for central investigative agencies in recent years. Such investigations are generally initiated following complaints from lending institutions and aim to establish the flow of funds, identify beneficiaries and determine the extent of financial loss caused to banks.
Source PTI
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