CBI books Unitech promoter Sanjay Chandra, family in Rs 198 crore Canara Bank fraud

The Central Bureau of Investigation (CBI) has booked Managing Director of Unitech Sanjay Chandra, his father Ramesh and brother Ajay for alleged fraud to the tune of Rs 198 crore using public money in Canara Bank. After registering a fresh case against Chandra, the CBI carried out searches at various locations at the premises of the accused.

After spending 43 months in Tihar jail, Sanjay Chandra was released on interim bail on Friday by a Delhi court on health grounds. Canara Bank has accused the real estate company of availing credit facilities from it on personal and corporate guarantees from Chandras.

The company had later started reneging payments citing low demand in the housing market. Canara Bank had alleged in its complaint, "Out of the Rs 14,270 crores collected from 29,800 homebuyers, around Rs 5,063.05 crore was potentially not utilized for the construction and execution of 74 identified projects. Similarly, Unitech availed Rs 1805.86 crore from six financial institutions, out of which Rs 763 crore was not utilized for projects."

Canara Bank also alleged in its complaint that the company committed an alleged breach of trust and created favour of a third party without the prior knowledge of the mortgagee.

The government had taken control of the company in December 2019 and the Supreme Court had ordered a forensic audit by Grant Thornton into the company's account books.

It was unearthed that the company diverted, siphoned off and misappropriated funds in the Grant Thorton audit. The Grant Thornton audit had further revealed that between 2007-2010, the company made investments worth over Rs 1,745 crore in Cyprus, which is also a tax haven. The audit report laid bare alleged unexplained write-off of investments and advances to related parties, diversion of funds to offshore tax havens and related companies.

Also read: IRDAI nod to raise Axis Bank's stake likely by March, says Max Life CEO

Also read: UBS sells 20 lakh IndusInd Bank shares worth Rs 184 crore