HYDERABAD: The Central Bureau of Investigation (CBI) has booked promoters of two hotels — Saptarshi Hotels and Maha Hotels Projects, for an alleged loan fraud of over Rs 159 crore. The CBI said the companies, accused in the case, had misappropriated funds loaned by the Punjab National Bank (PNB) and the Punjab & Sind Bank (PSB) by diverting them for their personal ends.
As per the complaint filed by the banks, Maha Hotel Projects and its promoters representing Saptarishi Hotels were sanctioned a credit facility of Rs 108.67 crore by PNB and Rs 96.33 crore by PSB, but failed to furnish required securities to secure a timely repayment of the loan.
The companies had presented the bank with their projected financials, including revenue cash flow and also agreed to route their receipts through the Trust & Retention Account being maintained with PNB, but due to non compliance of the agreement, the account had slipped into Non Performing Assets in May, 2016.Despite several warnings and reminders by the bank, the companies did not submit required information for a forensic audit and had routed funds outside the consortium. Additionally, they also colluded with contractors and suppliers to divert funds and invested in mutual funds.
Saptarishi Hotels is the developer of a four-star hotel, serviced apartments and convention hotel properties (DoubleTree by Hilton Projects), which is being built under public private partnership with Dr YSR National Institute of Tourism and Hospitality Management (NITHM). As part of the project, NIHTM has leased out three acres of the land for construction of a four-star hotel with a lease tenure of 33 years.