CBI books industrialist for Rs 290 crore bank fraud

A prominent city-based industrialist Manoj Jayaswal, who is already facing criminal charges in the coal block allocation case, has now been booked by CBI for a bank fraud to the tune of Rs 290.77 crore.
The agency, which raided Jayaswal's residence and office two days back, has filed an offence against him and other accused for fraudulently availing letter of credit facility during the fiscal year of 2011-2013 from Canara Bank and Vijaya Bank.
According to a press release issued by CBI yesterday, the raids were conducted on the basis of complaints by Canara Bank and Vijaya Bank, for an alleged fraud of Rs 290.77 crore in all.

The companies included in the FIR are: Abhijeet Projects, Avijeet Projects, Simplex Infrastructure and other unknown persons.
Four persons booked in the case in their capacity as then directors of these companies are - Manoj Jayaswal, his son Abhishek Jayaswal, Arun Kumar Srivastava and P N Krishnan.
They have been booked under section 120-B (Criminal Conspiracy) and 420 (Cheating) of the IPC.

Searches were conducted at three places in Kolkata, six places in Nagpur and one place each in Mumbai and Gurgaon, which led to recovery of incriminating documents, said the sleuths.
The CBI said the directors entered into a criminal conspiracy and cheated both the banks causing loss of Rs 218. 85 crore to Canara Bank and Rs 71.92 crore to Vijaya Bank, respectively.

The Jayaswals and others allegedly siphoned of loans secured from Canara Bank and Vijaya Bank to set up power plants. All companies of Abhijeet Group are registered in Kolkata.
One of the companies, Jas Infra and Power Ltd was setting up a 3,960 MW (660x6) power project at Banka (Bihar).
The company had signed an MoU with China's Da Fong to procure power plant equipment worth USD 2.5 billion.
The equipment including turbine and gen sets for the Group's 264 MW power plant at MIHAN-SEZ in Nagpur was also allegedly imported from China, the release added.