CBI files case against Delhi-based real estate firm
New Delh: The Central Bureau of Investigation (CBI) registered a case against a private real estate company Gardenia India Ltd, and others including its Directors/Guarantors; two Corporate Guarantor firms; unknown public servants and unknown others on a complaint from Union Bank of India involving bank fraud of Rs 109.17 crore (approx) to the consortium of Union Bank of India (lead bank) and Corporation Bank (Corporation Bank now merged with Union Bank of India).
The account of the company was classified as NPA by the Union Bank of India in December 2015 and the erstwhile Corporation Bank in 2014.
It was alleged that the company was established in 2007 to carry out the business of owning, building, developing, colonizing, and promoting residential, commercial and industrial buildings, and cinema houses and to deal in all kinds of immovable properties belonging to the group. The said borrower company had availed Term Loans from Union Bank of India and erstwhile Corporation Bank. Apart from personal guarantees provided by the Directors of the company, Corporate Guarantee was also provided by two other private companies based in Delhi.
It was further alleged that the said private company had cheated the bank by diverting the bank funds and disposing of assets without the bank’s permission. The sale proceeds were not allegedly routed through the project specified Escrow or Current Accounts.
It was also alleged that the accused had diverted a huge amount of money from the said borrower company to its related parties and subsidiaries. The company had allegedly opened an account in a non-consortium bank in violation of terms and conditions and received a huge amount in those accounts which were subsequently diverted.
It was further alleged that the company had not obtained the NOC from the lender Banks before selling hypothecated flats and had misrepresented the financial figures and information which led concealing of material information from the bank.
Searches were conducted in locations including Delhi, Noida, Ghaziabad, Gurugram etc. Further investigation is in progress.
