They have been accused of dishonest Canara Bank of ₹198 cr.
The CBI has registered a case towards Unitech Limited, its then managing director Ramesh Chandra, and his sons, Sanjay and Ajay, for allegedly dishonest the Canara Bank of ₹198 crore. Mr. Chandra’s sons have been administrators within the firm, which had been coping with the bank since 1971 and had availed itself of assorted credit score limits beneath multiple-banking association.
In June 2015, the common limits have been renewed for a 12 months and continuation of bank assure restrict of ₹64.99 crore allowed until its expiry. However, the corporate didn’t submit the renewal papers. The bank permitted three months of short-term rest, proscribing the non-fund-based working capital restrict to ₹250 crore.
However, the corporate didn’t clear the excellent. As on May 28 this 12 months, the legal responsibility stood at ₹198.09 crore and the contractual legal responsibility was ₹95.88 crore. The bank moved the Debut Recovery Tribunal. The account was labeled as non-performing asset in March 2017.
The similar 12 months, the Economic Offences Wing of the Delhi Police arrested the managing director and his son, Ajay, for allegedly failing to finish a housing mission in Gurugram on time.
During an inquiry, the bank discovered that the mortgaged properties had already been disposed of by the developer. A forensic audit revealed that funds have been allegedly diverted and misappropriated. Of the ₹14,270 crore collected from 29,800 residence patrons, about ₹5,063.05 crore was apparently not used for the execution of 74 recognized initiatives.
Unitech acquired ₹1,805.86 crore from six monetary establishments, of which ₹763.06 crore was not used for the initiatives, as alleged. As it turned out, the FIR mentions, three subsidiaries of Unitech made investments of ₹1,745.81 crore in 10 Cyprus-based firms in 2007-10. Investments and advances to associated events have been inexplicably written off.