Bank fraud: CBI files FIR against Corporate Power Ltd

It was also alleged that trade receivables mainly including transactions to related parties and funds, were diverted to a web of various companies who were dummy accounts accordingly, the borrower was able to siphon off funds, a CBI spokesperson said in a statement.The agency has named the company and its promoters and directors in the FIR.

The CBI has filed an FIR against Corporate Power Limited and its directors for alleged bank fraud of Rs 4,000 crore, officials said.

The agency searched 16 locations on Thursday in multiple cities, including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, and Vishakhapatnam, they said.

The Kolkata-based company had allegedly committed a bank fraud of Rs 4037.87 crore involving a consortium of 20 banks. ''It was further alleged that between the years 2009 and 2013, the said borrower had submitted manipulated project cost statements and diverted bank funds. It was also alleged that trade receivables mainly including transactions to related parties and funds, were diverted to a web of various companies who were dummy accounts; accordingly, the borrower was able to siphon off funds,'' a CBI spokesperson said in a statement.

The agency has named the company and its promoters and directors in the FIR.