Rs627 Crore Bank Loan Fraud: CBI Files Case against Gujarat-based Jaihind Projects
The central bureau of investigation (CBI) has filed a case against Gujarat-based Jaihind Projects Ltd (JPL) over allegations of fraud involving loans amounting to Rs627 crore taken from five banks, including IDBI.
The case has been filed against JPL and its directors, Chetan Tolani and Gaurav P Hinduja, along with unidentified government officers and employees.
JPL's office is located on the third floor at Venus Atlantis near Prahladnagar Garden, Ahmedabad.
IDBI Bank's general manager (GM), Rahul Sinha, filed a complaint with the Delhi CBI on 17 March 2022, stating that JPL had undertaken projects involving the installation of gas, oil, water, and chemical pipelines.
IDBI Bank approved Rs65 crore for the Morbi Mundra pipeline (MMPL) project, which was under Gujarat State Petronet Ltd (GSPL), on 2 July 2008.
On 19 February 2009, the Bank approved non-fund based (NFB) credit facilities worth Rs178.55 crore for the Jafrabad pipeline project, also under GSPL.
Other banks, namely State Bank of India, Bank of Baroda, Canara Bank, and Indian Bank, had also given loans worth crores of rupees for the project.
However, the directors of JPL had allegedly diverted the funds, as revealed in the forensic audit conducted by the banks.
The claims of payment were made in some cases, but the documents demanded by the banks and forensic auditors were not submitted.
Consequently, IDBI Bank and the four other consortium banks declared JPL's account NPA (non-performing asset) for not paying the loan amount.
The case is still under investigation.
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