HYDERABAD: IVRCL, a Hyderabad-based infrastructure company, floated as many as 60 companies under different names and diverted Rs 7,000 crore.
The CBI Bank Security and Fraud wing, which registered cases against the company, has intensified the probe into the fraud.
It came to light that the IVRCL management was maintaining 75 bank accounts with the SBI by setting up at least 60 companies under different names for their regular business activities. The loan amount that was taken from several banks was diverted to these companies.
‘Fake’ collateral
The investigation agency also found that the collateral properties that the company had pledged to the banks were worth much less than what the company had shown. For instance, the 247 acres of land located at Sriperambudur in Tamil Nadu, which was pledged by the company, was shown to have an estimated value of Rs 988 crore during the loan sanction. However, its real value was only Rs 144 crore.
Similarly, a 152 acre land located at Sriperambudur was shown to have an estimated value of Rs 608 crore during the loan sanction, whereas the real value of the land was Rs 171 crore. Another piece of 200- acre land located at Vayalur in Tamil Nadu was pegged at Rs 95 crore during the loan approval, but its actual value was Rs 34 crore.
Various lands and buildings owned by the company at Hyderabad were valued at Rs 10 crore for availing loans. Similarly, the accused company submitted reports of the company’s e-stocks, receivables, and unbilled revenue of Rs 4,598 crore at the time, but its liquidation was just Rs 1,630 crore.
SBI’s forensic audit report
Based on the SBI’s forensic audit report, the CBI will now probe into the matter where IVRCL made excess payments to its vendors such as Afrokon Limited, in comparison to the collection received from the Kenya Project.
The work at the project site was stalled and was on the verge of termination. The accused company hired sub contractors for performing project works at different places.
It was also found that the accused company has not shared list of all its vendors to whom payments were made.
Companies floated under IVRCL
Locations of the prime developers of IVRCL included Araku, Erode, Adayar, Amalapuram, Bhimavaram, Bobbili, Egmore, Guindy, Guntur, Palakkad, Red Hills, Tambaram, and Tuni. Names of some of the floated companies - IVRCL Resorts and Clubs, IVRCL Goa Tollways, Indore Gujarat Tollways, Megamalls, Kasibugga Developers, IVRCL TLT Developers, Rudravaram Developers, Siripuram Prime Developers, Vijayawada Developers, HDO Technologies, IVRCL Clubs Limited, etc.