CBI registers ₹6,524-crore loan ‘fraud’ case against IL&FS Transportation Network and others

The FIR been registered on a complaint from the leading lender, Canara Bank.

June 02, 2023 09:42 pm | Updated 09:42 pm IST - NEW DELHI

The Central Bureau of Investigation (CBI) has registered a case against IL&FS Transportation Network Limited and its then directors for allegedly cheating 19 banks of about ₹6,524 crore as on October 31, 2021.

Among those named in the First Information Report (FIR) are the Mumbai-based company’s then managing director Karunakaran Ramchand, director Deepak Das Gupta, whole-time director Mukund Gajanan Sapre and then chief financial officer Dilip Lalchand Bhatia.

The CBI has conducted searches on the premises of the accused persons in Delhi, Gurugram and Mumbai. 

The FIR, which has been registered on a complaint from the leading lender, Canara Bank, mentioned that as per the resolution process adopted under the supervision of the government of India, the overall claim earlier admitted by the company was ₹19,174 crore.

However, of the total 32 secured financial creditors (including Canara Bank), 19 lenders provided the mandate for filing a complaint with the CBI, involving about ₹6,524 crore.

The company, a subsidiary of IL&FS Limited, is developer, operator and facilitator of surface transportation infrastructure projects, for conceptualisation through commissioning of operations and maintenance under public private partnerships on the Build-Operate-Transfer (BOT) basis in India. It is the largest BOT road asset owner in India and a market leader in the transport infrastructure sector having its presence in metro rail, city bus service and border check posts, said the FIR.

For its business, the company had availed itself of various credit facilities under the multiple banking arrangement. Canara Bank, being the largest lender, had sanctioned ₹500 crore in loan and external commercial borrowings of $75 million through its London branch and $50 million via the e-Syndicate Bank’s London branch. Owing to the alleged irregularities in the credit facilities, the account turned a non-performing asset on December 30, 2018, in Canara Bank. Based on a forensic audit report, it was declared a fraud in September 2021, said the FIR.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.