CBI Registers Fresh Case Against Unitech MD in Canara Bank Fraud

The CBI has booked Unitech’s Managing Director, Sanjay Chandra, his father Ramesh and brother Ajay for the alleged bank fraud of Rs.198 crore in Canara Bank, the officials said.

After registering the fresh case against Sanjay, CBI carried out searches at multiple locations at the premises for the accused, as per PTI report.

Sanjay was released on interim bail from Tihar Jail on Friday after 43 months, after a Delhi court gave him relief on medical grounds.

The company is already facing multiple probes by several agencies including Delhi Police, CBI and the ED, while Sanjay’s alleged role has also figured in the 2G Spectrum scam but was acquitted by the trail court.

The Canara Bank has alledged that the company had been availing credit facilities from it on the basis of personal and corporate guarantees from Chandras. Later due to low demand in the housing market, the company started defaulting on payments.

The government had taken over control of the company and the Supreme Court had ordered a forensic audit by Grant Thorton into the company’s finances. It was in these audit it emerged that the company has diverted, siphoned off and misappropriated funds. Our of Rs.1,4270 crore collected from 29,800 homebuyers, around Rs.503.05 crore was potentially not utilized for the construction and execution of the 74 identified projects.

The bank also alleged in its complaint which is a part of the FIR, that in the similar fashion, Unitech availed Rs.1805.86 crore from six financial institutions, out of which Rs.763 crore was not utilized for projects.

The audit further said that between 2007 and 2010, Unitech made various investments worth over Rs.1745 crore in Cyprus.

It said that the report showed alleged unexplained write-off of investments and advances to related parties, diversions of funds to offshore tax havens and related companies. Unitech also allegedly committed a breach of trust and created false ownership in favour of a third party without the knowledge of mortgagee, alleged the bank while a misappropriation of Rs.198 crore of public money by Unitech.