The Central Bureau of Investigation (CBI) has initiated legal action against Unity Infraprojects Ltd, a Mumbai-based developer, along with its Chairman and Managing Director (CMD), Kishore Avarsekar, three directors, and unidentified public servants.
They are accused of defrauding the State Bank of India (SBI) and a group of 15 banks to the tune of Rs 3,847.58 crore. The FIR, stems from a complaint filed by the Deputy General Manager at SBI’s Stressed Assets Management Branch I in Mumbai.
The FIR lists Unity Infraprojects Ltd, Kishore Avarsekar (CMD), Abhijit Avarsekar (Vice Chairman and Promoter Guarantor), Ashish Avarsekar (Executive Director), Pushpa Avarsekar (Whole-time Director and Promoter), unidentified public servants, and private individuals.
According to the complaint, credit and loan facilities, totaling around Rs 3,800 crore, were extended to Unity Infraprojects Limited by SBI and other members of the consortium of banks.
The complaint alleges that the fraud transpired at the bank’s commercial branch in Mumbai, where the accused parties purportedly siphoned off bank funds through fictitious transactions and manipulated financial records. Their objective was to defraud and deceive the bank while illicitly benefiting from the bank’s funds.
The FIR states, “The said company by way of fictitious transactions undertaken by it through fraudulent LC trade model, improper adjustment entries by fudging data, diversion of funds through non-consortium accounts, diversion of funds through related parties and unexplained excess payouts, siphoned off the funds of SBI and other consortium banks and thereby cheated these banks.” The complaint prima facie indicates potential violations of criminal conspiracy, cheating, and criminal misconduct under Sections 120 B and 420 of the Indian Penal Code, as well as Sections 13(2) and 13(1)(d) of the Prevention of Corruption Act.
