The CBI has booked GTL Limited, which deals with telecom infrastructure planning and services, and its directors for allegedly diverting a “substantial part” of Rs 4,760 crore credit lines from a consortium of banks led by IDBI.
The CBI in its FIR filed on January 21 alleged that GTL, promoted by Manoj Tirodkar and Global Holding Corporation Pvt Ltd as promoters, created a sham network of sellers to divert bank loans under the guise of giving them advances for works that largely they stayed on paper. .
A forensic audit by NBS and Co revealed “that out of Rs 1,397.97 crore outstanding from vendors as at 31 March 2012, Rs 1,141.94 crore given as advance to vendors belongs to 2010-11 and no materials have been received against said advances”.
The CBI has also alleged in its FIR that GTL Ltd made use of the loan facilities for “misrepresentation that the entire amount of the loan will be used for business purposes” of the company. However, shortly after disbursement, most of the loan amount was not used for its stated purpose. The forensic audit showed that the company “misled lenders and then misappropriated the funds,” the CBI alleged.
A substantial amount of large advance payments to suppliers remained outstanding, a part of which was returned to GTL Ltd by them after retaining the depleted quantity for the alleged marginal supply of items.
Altogether, just ₹1,213.97 crore was outstanding against four companies: Acuity Trading Pvt Ltd, Lenit Trading Pvt Ltd, Venerate Trading Ltd and Vinamara Multitrading Pvt Ltd. Analyzing the company’s tax data, the CBI stated that ” GTL Limited gave huge advances of ₹2113.76 crore in FY 2010 against which material received was only ₹65.33 crore.”
The CBI also said that the vendors onboarded within 3 months and individually had poor net worth. More telling, according to the agency, the “Association Memorandum of these GTL providers is exactly the same, clearly stating that all MoAs have been drafted by the same agency/source.”
The CBI stated that “The Directors had no knowledge of the supply made by them to GTL Limited, source of acquisition by the selling companies, godown of the selling companies, where the material was being supplied. They had no knowledge of the work that these supplier companies did.”
Another noted irregularity was that the working capital funds were used by the company to purchase fixed assets from suppliers. The fund was also used to invest in various companies by purchasing their shares.
The GTL earned ₹1055 crore in the 2009-10 fiscal year and another ₹1970 crore in the next fiscal year from the consortium of banks. Of this loan amount, ₹649 crore was invested in short-term mutual funds in 2009-10 and ₹1095 crore in 2010-11. More than that, ₹135 crore was invested in fixed deposits in 2010-11.
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