Coastal Projects accused of duping SBI, other banks by manipulating accounts, BFSI News, ET BFSI

The Central Bureau of Investigation (CBI) on Saturday booked Coastal Projects Ltd and its directors in a bank bank fraud worth over Rs 4,736 crore in a consortium of banks led by the State Bank of India (SBI).

The complaint from the SBI, now a part of the FIR, has alleged that the accused construction company, during the five year period between 2013 and 2018, falsified account books and financial statements to show unrealisable bank guarantee amounts as realisable investments, the CBI said.

The Hyderabad-based company also allegedly gave wrong information on promoters’ contribution, converted receivables from related parties to investments to siphon off bank funds.

The loan account of the company became a NPA with retrospective effect from October 28, 2013 and subsequently declared fraud on February 20 last year.

Searches were conducted at the residential and official premises of the accused at Hyderabad and Vijayawada, which led to the recovery of several incriminating documents and other material evidence.

(with inputs from PTI)