CBI books GTL for cheating, bank fraud in Rs 4,760 crore credit facilities

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NEW DELHI: The CBI has filed an FIR against telecom infrastructure major GTL for allegedly diverting a substantial portion of a Rs 4,760 crore loan availed from a consortium of banks led by IDBI Bank, officials said.

The agency has booked the company, unidentified directors, public officials and vendors under IPC sections related to criminal conspiracy, cheating and provisions of the Prevention of Corruption Act, following a preliminary inquiry which showed that GTL had fraudulently obtained various credit facilities from consortium of banks, they said.

According to the FIR, the company allegedly diverted or siphoned off a majority of the loan amount in conspiracy with its vendors, unidentified bank officers, among others.

The FIR has alleged GTL Limited was extending advances to vendors year on year without supply of material/goods, and eventually these advances were provisioned.

“Various vendor companies were created and operated with the mala fide intention of siphoning off the bank short-term funds and other credit facilities in connivance with borrower, ie, GTL Limited,” the FIR has alleged. 

The IDBI Bank had conducted a special audit of the company in 2011 and raised the issue of suspicious transaction with the vendors.

The Economic Offences unit of the agency has found that the RBI had warned IDBI Bank on April 1, 2016 to “red flag” the account and conduct a forensic audit, but in its response submitted two months later, the bank stated on behalf of the entire consortium lenders not to classify the account as ‘Red Flags’ and also not to appoint a forensic auditor as it may delay the dues settlement.

The RBI reiterated its directive following which a forensic audit was instituted on July 30, 2016.

The company was engaged in the business of providing telecom network deployment services, operations and maintenance services, professional services, network planning and design services and energy management services to telecom operators in India and international markets.