New Delhi, 19 July (H.S.): The Central Bureau of Investigation (CBI) conducted searches at six locations across four states — West Bengal, Odisha, Tamil Nadu and Uttarakhand — in connection with a Rs 1,109 crore bank fraud case. The action was carried out in a case registered against M/s Gupta Power Infrastructure Limited, based in Bhubaneswar, Odisha.

According to the CBI, the company has been accused of committing fraud amounting to Rs 1,109 crore while availing various fund-based and non-fund-based financial facilities from Canara Bank. The investigating agency alleged that the company inflated the value of its stock, artificially increased trade receivables and manipulated financial statements to obtain higher credit facilities.

The agency further alleged that the loan amount was misappropriated and diverted for other purposes, while the bank was also allegedly caused financial losses through the practice of “evergreening” of loans, wherein old loans are shown as regular by obtaining fresh credit facilities.

The CBI carried out the searches on Saturday on the basis of search warrants issued by the Special CBI Court in Bhubaneswar. As part of the investigation, searches were conducted at the residences of four directors of the company in Bhubaneswar, the company’s registered office in Kolkata, West Bengal, and three manufacturing units located in Kashipur in Udham Singh Nagar district of Uttarakhand, Tiruvallur in Tamil Nadu and Bhubaneswar in Odisha.

The CBI said that several documents were recovered during the searches. Further investigation into the case is underway.

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Hindusthan Samachar / Jun Sarkar