The CBI has filed a case against IL&FS Transportation Network
The CBI has filed a case against IL&FS Transportation Network Ltd and its directors for allegedly defrauding 19 banks of Rs 6,524 crore between 2016 and 2018.
Some of the bank that the company allegedly cheated include Punjab National Bank, Canara Bank, Bank of India, State Bank of India, Axis Bank and Yes Bank, among others.
IL&FS Transportation Network is a subsidiary of IL&FS Ltd, which filed for bankruptcy in 2018.
"Public money of more than Rs 6,524 crore has been misappropriated by ITL and thereby cheated all the lenders. The accused persons are white colour criminals and very well know the intricacies of the law and know to save themselves from the clutches of the law," Canara Bank said in its complaint to the Central Bureau of Investigation (CBI).
The fraud by IL&FS Transportation Network Ltd (ITNL) and its directors came to light after the National Company Law Tribunal in 2018 appointed a new board of directors that took over the parent firm IL&FS, the first information report (FIR) said.
Grant Thorton had conducted the forensic audit on IL&FS and its 348 group companies, the FIR said.
The FIR said there were potential Irregularities in reporting provisions for expenses, which may have a direct impact on reported profits. ITNL also allegedly overstated its income, which showed an incorrect financial position.
The FIR said ITNL transferred substantial funds without accounting or entering the records in the company software. Commercial papers were arranged to allow circular transactions between ITNL and other group firms.
Other issues detected included taking fake competitive quotes from sub-contractors and recording fake expenses on buying 459 tonnes of steel from a vendor registered as a trader of tyres.