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CBI registered case against IL&FS Subsidiary For Allegedly Defrauding 19 Banks

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LI Network

Published on: 02 June 2023 at 22:08 IST

The Central Bureau of Investigation (CBI) has filed a case against IL&FS Transportation Network Ltd (ITNL) and its directors for allegedly defrauding 19 banks of ₹6,524 crore between 2016 and 2018. Among the banks that were allegedly cheated are Punjab National Bank, Canara Bank, Bank of India, State Bank of India, Axis Bank, and Yes Bank, among others.

IL&FS Transportation Network Ltd is a subsidiary of IL&FS Ltd, which had filed for bankruptcy in 2018.

Canara Bank, in its complaint to the CBI, stated that the accused individuals are white-collar criminals who are well-versed in the intricacies of the law and know how to evade legal consequences. They have allegedly misappropriated public funds amounting to over ₹6,524 crore, thereby cheating all the lenders.

The fraud committed by ITNL and its directors came to light when a new board of directors was appointed by the National Company Law Tribunal in 2018 to take over the parent company, IL&FS, as mentioned in the first information report (FIR).

The FIR also stated that Grant Thornton conducted a forensic audit on IL&FS and its 348 group companies, revealing potential irregularities in the reporting of expenses, which could have a direct impact on reported profits. Additionally, ITNL is accused of overstating its income, resulting in an inaccurate financial position being portrayed.