CBI books Unitech MD, family in Canara bank fraud; carries out searches

The CBI has booked Managing Director of Unitech Sanjay Chandra, his father Ramesh and brother Ajay for alleged bank fraud of Rs 198 crore in Canara bank, officials said Sunday.

The CBI after registering the fresh case against Chandra carried out searches at multiple locations at the premises of the accused.

Sanjay Chandra was released on interim bail from Tihar Jail on Friday after 43 months after a Delhi court gave him relief on medical grounds.

The company is facing multiple probes by several agencies including Delhi Police, CBI and the ED.

Chandra's alleged role had also figured in the 2G Spectrum scam but he was acquitted by the trial court.

The Canara Bank has alleged that the company had been availing credit facilities from it on the basis of personal and corporate guarantees from Chandras.

Later, due to low demand in the housing market, the company started defaulting on payments.

The government had taken over control of the company and the Supreme Court had ordered a forensic audit by Grant Thorton into the company's finances.

It emerged in the forensic audit that the company has diverted, siphoned off and misappropriated funds.

"Out of of Rs 1,4270 crores collected from 29,800 homebuyers, around Rs 5063.05 crore was potentially not utilised for the construction and execution of the 74 identified projects.

"Similarly Unitech availed Rs 1805.86 crore from six financial institutions, out of which Rs 763 crore was not utilised for projects," the bank alleged in its complaint which is now part of the FIR.

The audit also showed that between 2007 and 2010, the company made investments of over Rs 1,745 crore in Cyprus, a tax haven.

The report showed alleged unexplained write-off of investments and advances to related parties, diversion of funds to offshore tax havens and related companies, it said.

The company allegedly committed a breach of trust and created false ownership in favour of a third party without the knowledge of mortgagee, the bank alleged.

The bank alleged that the company has misappropriated Rs 198 crore of public money.