CBI registers case against Unitech MD Sanjay Chandra in Canara Bank fraud

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According to Moneycontrol, the CBI has charged 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 noting down the fresh case against Chandra conducted 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 currently undergoing multiple probes by several agencies including Delhi Police, CBI and the ED. 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 a drop in the demand in the housing market, the company started defaulting on payments.

The government had taken the reins of the company and the Supreme Court had issued orders a forensic audit by Grant Thorton into the company’s finances. It came to light in the forensic audit that the company has diverted, siphoned off and misappropriated funds.

The audit also reflected 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 has deduced that the company has misappropriated Rs 198 crore of public money.

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