CBI files Rs 4,700 crore bank fraud case against under-liquidation infra firm Coastal Projects
Promoters of another company, which had undergone corporate insolvency resolution process, have been found committing bank frauds. The Central Bureau of Investigation has registered a case against Hyderabad-based infrastructure company Coastal Projects Ltd, its promoters and directors for committing a bank fraud of Rs 4,737 crore.
The case has been filed on the complaint of State Bank of India, which was the lead banker in the consortium of banks that included IDBI Bank, Canara Bank, Bank of Baroda, Bank of Maharashtra, Punjab National Bank, UBI and EXIM Bank.
The complaint has named Sabbineni Surendra, Chairman & Managing Director and Guarantor; Garapati Harihara Rao, Managing Director & Guarantor; Sridhar Chandrasekharan Nivarthi, Whole Time Director and Director (Finance); Sharad Kumar, Whole Time Director; K Ramulu, Guarantor & Mortgagor; Mrs. K. Anjamma, Guarantor & Mortgagor; M/s Ravi Kailas Builders Pvt. Ltd. represented by its Managing Director/Director Ramesh Pasupuleti, Govind Kumar Inani and unknown public servants/others.
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It has been alleged that the accused in connivance with unknown public servants and others defrauded the consortium of banks. The account became NPA on 25 January 2017 with retrospective effect from 28 October 2013 and reported as fraud on 20 February 2020.
It was further alleged that Coastal Projects Ltd had indulged in falsification/fabrication of books of accounts, manipulations/falsification of the financials during 2013-18 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.
Searches were conducted at the residential and official premises of the accused at Hyderabad and Vijayawada which led to recovery of several incriminating documents and other material evidences.
SBI had filed an insolvency application against Coastal Projects Ltd in January 2018 for defaulting on payment of Rs 975 crore. The company owed Rs 7,100 crore to banks and other financial institutions.
During the CIRP, only one resolution applicant –Mantena Engitech Pvt Lts – had submitted its resolution plan. It had offered Rs 989 crore to take over the Coastal Projects, but majority financial creditors rejected the plan forcing the NCLT to order liquidation of the Coastal Projects.
