The CBI conducted searches at four locations in Mumbai after filing an FIR against Unity Infraprojects Ltd, its then-CEO Kishore Krishnarao Avarsekar, and others for allegedly defrauding a consortium of banks to the tune of 3,847.58 crore, officials said on Monday.The CBI acted on a complaint filed by the SBI, one of the consortium members, alleging that the fraud occurred at its Commercial Branch in Mumbai, where the accused persons syphoned the “Banks funds by doing fictitious transactions, manipulated and fudged books of accounts with an objective to defraud and cheat the bank and to gain unlawfully at the cost of the Banks funds”.According to the officials, the premises of the accused recently went through searches.Mumbai infrastructure company scam The 44-year-old infrastructure company had taken over ₹ 3,800 crore from 23 lenders against moveable and non-moveable assets besides personal and corporate guarantees. Its account had become a non-performing asset on June 24, 2014. After five years, it was declared a fraud after a forensic audit pointed to irregularitiesThe BDO India LLP had conducted a forensic audit which brought the fraud to light, the bank alleged. The report of the audit was submitted on September 25, 2019. This report found fictitious transactions improper adjustment entries passed to accommodate fictitious accounting entries to defraud the bank by fudging the data, and diversion of funds through non-consortium accounts, among others.There were citations of the unexplained excess pay-outs with intentions to siphon off bank funds and related party transactions to divert borrowed funds.A case has been registered against the company the former chairman and the former directors and executives by the agency. They have been booked under IPC sections of criminal conspiracy (120B), cheating (420) and provisions of the Prevention of Corruption Act.(With agency inputs)
