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CBI files chargesheet against 16 in Rs 947.71cr loan fraud case

New Delhi, Dec 31 (IANS) The Central Bureau of Investigation (CBI) on Friday said it has filed a chargesheet against 16 people in connection with a Rs 947.71 crore loan fraud case.

The accused individuals took loans from different financial institutions on the pretext of opening a thermal plant in Tamil Nadu.

The chargesheet was filed before the Special Judge, CBI cases, Rouse Avenue Court Complex in the national capital.

The court is yet to take cognisance of the chargesheet.

The CBI registered the case in 2019 following the Central government order.

Earlier, the Economic Offences Wing (EOW) of the Delhi Police was looking into the matter.

The EOW had booked five persons as the accused, including a Hyderabad-based private firm and its director.

The CBI investigation revealed that the borrower company through its Chairman and Managing Director had allegedly availed Rs 947.71 crore from a consortium of lenders led by Power Finance Corporation Limited and other two lenders, Rural Electrification Corporation Limited and India Infrastructure Finance Company Limited.

They took the loan for setting up a thermal power plant at Tuticorin in Tamil Nadu.

However, the company neither completed the project nor complied with the terms and conditions of loan agreements.

The accused, including the borrower company, allegedly transferred the entire loan to create fixed deposits with Bank of India and UCO Bank and to pay advance payments to contractors.

Subsequently, the accused allegedly availed loans against these fixed deposits and paid to the contractor for the group companies and later due to non-repayment of loan amount, the said FDs were adjusted against the loan accounts leading to a loss to the lenders.

"The borrower company in collusion with other accused illegally used and siphoned off the funds disbursed for setting up a thermal power project. Thus, the accused cheated the financial institutions and caused them a loss of Rs 947.71 crore," the chargesheet said.