CBI books IL&FS Energy, executives in alleged Rs 212 crore Canara Bank loan fraud case

The CBI has registered an FIR against IL&FS Energy Development Company Ltd and its executives over an alleged Rs 212 crore loan fraud involving Canara Bank. Searches were conducted at the Mumbai, Delhi and Noida premises.

The case follows a complaint by Canara Bank alleging that loans sanctioned by Syndicate Bank, which later merged with Canara Bank, were diverted from their intended purposes, according to a TOI report. A forensic audit reportedly flagged transactions involving group and associate companies, allegedly causing a loss of Rs 212 crore to the bank.

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IL&FS Energy had secured a Rs 100 crore term loan from Syndicate Bank's Mumbai branch and a $50 million loan from its London branch. The funds were intended to finance infrastructure and renewable energy projects, including solar and wind ventures, and provide funding to project specific entities.

The CBI has named the company and its directors and executives Sunil Wadhwa, Anoop Seth, Hari Sankaran, Ramesh Chandra Bawa and Arun Kumar Saha as accused. Unknown public servants and private individuals have also been named in the case.

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During the search operation, the agency seized bank documents, deposit slips, mutual fund portfolio records, bank account and property details, and company ledgers.

The case involves allegations of criminal conspiracy and cheating, along with offences under the Prevention of Corruption Act.

(With inputs from TOI)