INDIA. Mumbai: The Chairman and Managing Director (CMD) of Delhi-based “Tirupati Infraprojects Private Limited” was arrested by the Central Bureau of Investigation (CBI) on Monday in connection with a fraud of Rs. 289.15 crore involving a consortium of banks. The CMD, Jag Mohan Garg, along with eight others, has been named in the FIR registered by the CBI. The accused have been charged under various sections of the Indian Penal Code and the Prevention of Corruption Act.
The accused company had availed credit facilities from the consortium of banks between 2009 and 2014. The funds obtained from the sale of commercial spaces in a hotel-cum-commercial building were allegedly diverted without the knowledge of the lender banks. The banks initiated the corporate debt restructuring mechanism, but the company failed to repay the debt and instead diverted the funds to associate companies.
After the accounts were classified as Non-Performing Assets, the bank consortium issued demand notices under the SARFAESI Act, seeking payment within a specified period. Symbolic possession of the company’s properties was taken by the banks. The CBI conducted searches and recovered incriminating documents during the investigation.
The cumulative loss to the consortium is estimated to be Rs. 979.85 crore as of December 31, 2021. The CMD and the other accused have been remanded to police custody until Thursday.
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