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CBI lens on ‘fake’ transactions by firm in Rs 3,847-cr bank fraud

NewsCBI lens on ‘fake’ transactions by firm in Rs 3,847-cr bank fraud


The Central Bureau of Investigation (CBI) has started analysing the forensic audit report related to alleged defrauding of the State Bank of India (SBI) and 15 other consortium member banks to the tune of Rs 3,847.58 crore by Unity Infraprojects Limited, a Mumbai-based company.

The probe agency is preparing to question the accused and bank officials on the basis of the forensic audit’s finding that UIL and its directors indulged in fictitious transactions through a fraudulent LC trade model. The FIR against the company and its directors also notes the observations of the forensic audit that they indulged in diversion of funds through non-consortium accounts and diversion of borrowed funds through related party transactions.

The federal agency also plans to examine the allegations that improper adjustment entries were passed to accommodate fictitious accounting entries to defraud the bank by fudging the data. The forensic report said that the estimated wrongful loss to SBI by the accused stood at Rs 757.87 crore.

“Unity Infraprojects, its directors, guarantors and other unknown persons entered into criminal conspiracy and cheated SBI and other member banks of consortium by way of fictitious transactions and fudging of accounts, siphoned off the funds of the bank, did not repay the outstanding loans to the banks and thereby caused losses to the banks and unlawful gains to themselves,” said documents attached with the CBI FIR.
The CBI has registered a FIR under IPC sections 120 r/w 420 on the basis of complaint given on August 18, 2023 by Rajni Kant Thakur, deputy general manager, SBI, Stressed Assets Management Branch-I, Colaba,
The CBI’s list of accused in the case includes M/s Unity Infraprojects Limited; Kishore Krishnarao Avarsekar (CMD and promoter of UIL); Abhijit Kishore Avarsekar; Ashish Kishore Avarsekar; Pushpa Kishore Avarsekar and unknown public servants. The company, with an intention to siphon off money and cheat the consortium banks, did not charge interest from loans given to related party transactions. Also, loans and advances to related parties increased even when the company was facing a liquidity crisis. It was a modus operandi to defraud the bank finance through a related party model, the forensic report said. The CBI will also look into the forensic audit report’s observation that the accused made fictitious investments in related party companies. On tracing the source of funds utilised for investments made, the auditor found that working capital loan funds have been utilised to make two investments in its subsidiary company Chomu Mahla. Sales amounting to Rs 72 crore made to Jind Haryana have been effectively adjusted against share capital to Jind Haryana. Unity holds 100% of the share capital in Jind Haryana. Also, loan funds amounting to Rs 111 crore borrowed from L&T Infrastructure Finance Co. (Rs 81 crore) and Bajaj Finance (Rs 30 crore) were directly credit to the ledger account of its joint venture–Axellia Unity.

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