Big trouble for Tirupati Infraprojects! CBI catches their boss in a fraud of Rs. 289 crore bank cheating case.
The Central Bureau of Investigation (CBI) made a significant arrest in a major bank fraud case. Jag Mohan Garg, the Chairman and Managing Director of Tirupati Infraproject Private Limited, has been arrested for allegedly diverting loan funds worth Rs 289.15 crore. This money was for a luxurious hotel project in West Delhi.
Garg was presented before a special CBI court, which ordered his custody until July 13. The CBI initiated its investigation into the company’s actions on May 25, 2022, following allegations that Tirupati Infraprojects caused a loss of Rs 289.15 crore to a consortium of public sector banks led by the Bank of India. Other banks involved in the consortium include Union Bank of India, Canara Bank, Bank of Baroda, and UCO Bank.
The Bank of India has claimed that the total loss suffered by all the banks has now reached a staggering amount of Rs 979 crore as of December 13, 2021, due to the mounting outstanding dues.
The consortium had granted a term loan of Rs 300 crore to Tirupati Infraprojects between 2009 and 2014 to construct a prestigious hotel called Radisson Blu in Paschim Vihar, New Delhi. However, the company began encountering financial difficulties in 2012, ultimately leading to the loan being classified as a non-performing asset (NPA) in 2014.
According to the Bank of India’s complaint, the company, its promoters, and its directors engaged in fraudulent and suspicious activities, diverting and siphoning project-generated income for their gain. The bank also alleges that Tirupati Infraprojects entered into sale agreements with third parties without informing the lending banks and falsifying statements.
CBI spokesperson mentioned that the accused had also sold various commercial spaces of the hotel without informing the lender banks, diverting and siphoning off the funds received from these buyers.
Following the registration of the FIR, the CBI conducted searches and recovered incriminating documents during the investigation. The agency also examined witnesses, officials of the company, and bank officials.