The CBI on Friday arrested the directors of the Totem Infrastructure Ltd (TIL) in connection with its ongoing investigation into the Rs 1,394 crore loan fraud case involving a consortium of eight banks led by the Union Bank of India (UBI).
The bank's industrial finance branch had filed a complaint against M/s Totem infrastructure Limited, its promoter Tottempudi Salalith and director Tottempudi Kavita, both residents of Hyderabad, and said they are absconding.
"It was alleged that the private company had diverted the funds by opening accounts outside the consortium and through payments of wages by showing excess expenditure and huge stocks".
"A case of cheating, criminal conspiracy and criminal breach of trust has been registered against the accused company and its promoter".
In the complaint to CBI, a copy of which is with India Today, the SBI-led consortium alleged that "Kanishk Gold and its directors in collusion with statutory auditors" had a "clear criminal/malafide intent" to "cheat and defraud" the banks and to "gain illegal profit" by "misrepresenting/falsifying the record and financial statements of the company".
The case comes after a more-than $2 billion fraud in state-run Punjab National Bank, dubbed the biggest bank fraud in India's history, triggered scrutiny of all soured bank loans for any sign of wrongdoing. The total dues outstanding for the consortium is Rs 1,394.43 crore. This account became NPA on June 30, 2012 after default on payments of interests and instalments.
TIL is taking loans with our bank since November 2005 when it was sanctioned credit facilities of Rs 15 crore to complete the work orders in construction and infrastructure activities, the UBI complaint said.