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CBI files six charge sheets against Zoom Developers in Rs 558 crore bank frauds

Dec 16, 2019, 21:06 IST
PTI
New Delhi, Dec 16 () The CBI has filed six separate chargesheets in as many cases of alleged bank frauds worth Rs 558.16 crore by Mumbai-based Zoom Developers, officials said on Monday.

Besides the company, the CBI has chargesheeted its promoters and directors Vijay M Choudhary, Sharad Tikamdas Kabra, chartered accountant Shailesh Thakkar, Ramesh D Ajmera and Sovan Dasgupta in five chargesheets, while in one Manjiri Choudhary has been named as accused among them.

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It is alleged that the company worked abroad through 'aggregators' who leased it out the work of scraping or relocating factories and plants, they said.

This work was granted on the basis of guarantees from Zoom Developers issued by banks abroad which were given on the basis of such guarantees from Indian public sector banks, they said.

The payments from aggregators lessened the bank liabilities, they said.

The CBI has alleged that the mobilisation advances received from the aggregators were utilised by Zoom in speculative activities not declared while raising guarantees from Indian banks.

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In its chargesheets filed before special CBI court recently, the agency has alleged that the company showed work orders from aggregators, which were allegedly sham companies linked to it, to get guarantees from Indian banks, the officials said.

On the basis of these guarantees corresponding commitments were made by banks in the UK, the USA, Singapore and Switzerland, they said.

Initially the company was in banking arrangements with multiple banks wherein all the lenders, mainly public sector banks, assessed the bank guarantee limits separately, the CBI has said.

It said the arrangement was changed to a consortium based in 2004 with Punjab National Bank appointed as lead banker.

The company allegedly enjoyed a non-fund based bank guarantee limits from 26 banks, it said.

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An amount of Rs 2,510 crore was sanctioned by the banks to Zoom Developers. The company diverted loan funds and did not complete projects following which foreign banks invoked bank guarantees from Indian banks, the CBI has alleged.

The company did not pay back Indian banks resulting in losses to them, they said.

According to the CBI, Oriental Bank of Commerce suffered a loss of 131.51 crore, State Bank of Hyderabad Rs 113.90 crore, Allahabad Bank Rs 113 crore, Vijaya Bank Rs 104 crore, Corporation Bank Rs 55.30 crore and Andhra Bank Rs 40.45 crore. ABS AAR

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