New Delhi (02.01.2022): CBI has filed a charge sheet against 16 accused including a private company (Borrower Company), its Directors, sister companies, MD, CAs, and private persons before the Special Judge, CBI Cases, Rouse Avenue Court Complex, New Delhi. These accused availed loans from Power Finance Corporation Limited (PFC),  Rural Electrification Corporation Limited (REC) and India Infrastructure Finance Company Limited (IIFCL) 

CBI had registered a case on April 29, 2019, on the orders of the Govt of India against five accused including a private company based at Hyderabad and others including its Directors. It was also alleged that the borrower company in collusion with other accused illegally used and siphoned off the funds disbursed for setting up the thermal power project. Thus, the accused cheated the lenders and caused a loss of Rs. 947.71 crore to them.

The investigation has revealed that the borrower company through its CMD had allegedly availed Rs. 947.71 crore from a consortium of lenders led by PFC and other two lenders, REC and IIFCL, for setting up a thermal power plant at Tuticorin, Tamil Nadu.

It was further alleged that the borrower company neither completed the project nor complied with the T&Cs of loan agreements. The accused including the borrower company allegedly transferred/diverted the disbursed project funds to create fixed deposits with Bank of India & UCO Bank and to pay advances to contractors. Subsequently, the accused allegedly availed loans against these fixed deposits.