The Central Board of Investigation (CBI) has initiated legal proceedings against Unity Infraprojects Ltd due to suspicions of a ₹3,847.58 crore fraud case. Additionally, CBI conducted searches at four locations in Mumbai and filed charges against the former CMD, Kishore Krishnarao Avarsekar.
The case was launched based on a complaint by the State Bank of India (SBI), a member of the consortium, alleging fraudulent activities at its Commercial Branch in Mumbai. The accused individuals were accused of diverting the bank’s funds through fictitious transactions, manipulating and falsifying accounting records with the intention of defrauding the bank and unlawfully benefiting themselves at the bank’s expense.
Unity Infraprojects Ltd, a 44-year-old infrastructure company, had borrowed over ₹3,800 crore from 23 lenders, offering various moveable and non-moveable assets as collateral along with personal and corporate guarantees. The company’s account was classified as a non-performing asset on June 24, 2014, and five years later, it was officially declared as a fraud following a forensic audit that uncovered irregularities.
Recent searches were conducted at the residences of the accused individuals as part of the investigation.
