Hyderabad: CBI books conspiracy case against firm for cheating

Hyderabad: The Hyderabad unit of Central Bureau of Investigation (CBI) has booked a conspiracy case against Hitech Electro Power Systems (HEPS), along with its managing director and others, for allegedly cheating Canara Bank of Rs 5.03 crore.

The case, under Sections 120B (conspiracy) read with 420 (cheating), 468 (forgery) and 471 (using as genuine a forged [document or electronic record] of Indian Penal Code (IPC) along with the provisions of Prevention of Corruption (PC) Act, was registered against the company managing partner Kanithi Uday Bhaskar and two others, based on a complaint from the bank chief general manager KH Patnaik.

The CBI FIR said Bhaskar availed overdraft fund-based limit of Rs.4.90 crore on March 28, 2019 from e-Syndicate Bank (now Canara Bank) by offering primary security of hypothecation of stock in trade and collateral security of mortgage of industrial plot admeasuring 913.63 square yards at Warangal and residential house admeasuring 160 square yards at Hanamkonda.

The company partners, in collusion with guarantors and other unknown persons, defrauded the bank and diverted the borrowed funds for purposes other than for which they were lent. The valuation of collateral security was also inflated for availing the loan more than the eligibility and caused wrongful loss of Rs 5.03 crore to the bank and corresponding wrongful gain to themselves.

It was alleged that the company, to meet its working capital requirement based on purchase orders of Rs 25.47 crore received from Bharath Electronics, approached e-Syndicate Bank on December 27, 2018, and availed overdraft fund based limit of Rs.4.90 crore.

The CBI said the work orders purported to be issued by BEL, Chennai, were fake. Due to continued default on servicing of interest accrued, the account slipped to non-performing asset (NPA) on September 30, 2019, within six months of allowing the limit with an outstanding liability of Rs.5.03 crore.

The CBI said the company had diverted funds to some third parties, private firms or individuals who are no way related to the business of the firm, thereby misutilised the borrowed funds, for the purpose other than for which the loans were sanctioned.

The company had submitted inflated valuation of properties which they offered as collateral security to the bank, it added.