One of India’s biggest bank loan default cases has taken a murky turn with the Central Bureau of Investigation claiming that several vital documents pertaining to the case have been stolen in a conspiracy involving some of its own officials.
The documents pertain to investigations against Zoom Developers Private Limited, which is being probed for allegedly defrauding several nationalised banks of Rs.2,200 crore by taking out loans on the pretext of launching realty projects in Europe.
Indian public sector banks have been witnessing massive loan defaults by big corporate houses, many of which are suspected to be criminal conspiracies to siphon off funds and not merely business turning bad.
This was one of the biggest alleged default cases that the CBI is investigating.
Taking cognisance, the CBI has registered a case against its own unknown officials, the company and its director Vijay Choudhary, under various provisions of the Indian Penal Code and the Prevention of Corruption Act. Criminal conspiracy, theft, criminal breach of trust and criminal misconduct are the substantive charges.
Officials under scanner The CBI has alleged that by abusing their official position, some of its own officials helped prime accused Choudhary and his company get hold of these stolen papers that were used by the accused for their benefits at various places.
While the theft was detected in June 2014, the agency is yet to sum up investigations and identify all those involved in the case.
According to the FIR, the accused persons entered into a conspiracy between March 2011 and July 2012 with an intention to steal secret/confidential reports and internal communications of the CBI that were not meant for use by any outside agency.
It lists six such documents, which include the papers provided by Punjab National Bank, parts of a report on loans sanctioned by Syndicate Bank, and a confidential report prepared by a senior CBI official. Copies of another confidential letter and the complaint lodged by Punjab National Bank and papers containing certain internal comments on the investigations were also stolen.
The CBI has registered over half-a-dozen cases of cheating involving Zoom Developers and filed charge-sheet in five cases. The company, which appears in the list of wilful defaulters, purportedly owes about Rs.3,000 crore to over two dozen nationalised banks, including Punjab National Bank, Syndicate Bank, Canara Bank and Union Bank of India.
According to the CBI charge-sheets, Mr. Choudhary and his accomplices, including company secretary Sharad Kabra and some chartered accountants allegedly conspired to cheat the banks by getting bank loans through fraudulent means.
The company entered into paper contracts with about five European firms allegedly managed by associates of the accused persons, for various works. In the garb of its business model, the company allegedly raised funds by pledging bank guarantees with foreign banks.
The process adopted was allegedly in violation of Reserve Bank of India norms. A significant portion of the funds was allegedly diverted and invested in properties or companies and parked in bank accounts in countries like India, United States, Singapore, China, Italy and Switzerland.
The enforcement agencies have also identified a Liechtenstein-based trust where the funds were diverted.
In this connection, the Enforcement Directorate had recently attached 1,280 acres of land worth Rs.1,000 crore in the United States.
