Hyderabad: CBI books firm, managing director for duping Canara Bank

Hyderabad: The Hyderabad unit of the Central Bureau of Investigation has booked a case against Hitech Electro Power Systems (HEPS) and its managing director for allegedly duping Canara Bank of Rs 5.03 crore.

Based on a complaint by Canara Bank chief general manager KH Patnaik, the CBI has pressed charges against the HEPS under sections 120 B, 420 (cheating), 468 (forgery) and 471 (Using as genuine a forged 1[document or electronic record] of IPC along with the provisions of Prevention of Corruption (PC) Act which was registered against the company managing partner Kanithi Uday Bhaskar and two others.

The investigating agency’s FIR mentioned that Bhaskar took a draft fund amount of Rs 4.90 crore on March 28, 2019 from erstwhile e-Syndicate Bank, offering primary security of hypothecation of stock in trade and collateral security of mortgage of industrial plot measuring 913.63 square yards in Warangal district and residential house measuring 160 square yards at Hanamkonda.

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The company stake holders along with guarantors and other unknown persons defrauded the bank, diverting funds for purposes other than what it was lent for. It is to be noted that the value of collateral security was also increased in order to avail of the excess loans. It resulted in a loss of Rs 5.03 crore to the bank.

It was alleged that the firm purchased orders worth Rs 25.47 crore received from Bharath Electronics in order to meet its working capital requirement. HEPS approached e-Syndicate Bank on December 27, 2018, and drew the over draft amount of Rs 4.90 crore on March 28, 2019.

The CBI said the work orders to be issued by BEL Chennai were fake. With the constant default on servicing of interest accrued, the account turned into Non-Performing Asset on September 30, 2019 just six months after allowing the limit with an outstanding liability of Rs.5.03 crore.

The CBI said the firm diverted funds to a few third parties, private firms or individuals who have no stakes of the firm and thereby mis-appropriated the amount.

HEPS had submitted increased valuation of properties which they offered as collateral security to the bank, it added.

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