CBI FIR against Mumbai-based developer for defrauding SBI and 15 lenders of Rs 3,800 crore

The Central Bureau of Investigation (CBI) has registered an First Information Report (FIR) against Mumbai-based Unity Infraprojects Limited (UIL), its chief managing director (CMD), three directors and unknown public servants for allegedly defrauding State Bank of India and a consortium of 15 lenders of more than Rs 3,800 crore.

On Thursday, an FIR (First Information Report) was lodged following a complaint submitted by the Deputy General Manager of the SBI at the Stressed Assets Management Branch I. As per the allegations in the complaint, the SBI and other consortium member banks approved credit/loan facilities, both fund-based and non-fund based, amounting to approximately Rs 3,800 crore for Unity Infraprojects Limited.

The said company by way of fictitious transactions undertaken by it through fraudulent LC trade model, improper adjustment entries by fudging data, diversion of funds through non-consortium accounts, diversion of funds through related parties and unexplained excess payouts, siphoned off the funds of SBI and other consortium banks and thereby cheated these banks, the FIR stated.

FIR names UIL, its CMD Kishore Avarsekar, vice chairman and promoter guarantor Abhijit Avarsekar, executive director Ashish Avarsekar, whole-time director promoter Pushpa Avarsekar, unknown public servants, and private persons. Prima facie, the complaint discloses the commission of offences of criminal conspiracy, cheating and criminal misconduct under sections 120 B and 420 of the Indian Penal Code, and sections 13 (2), 13 (1) (d) of the Prevention of Corruption Act, it added.