The Central Bureau of Investigation (CBI) has registered a first information report (FIR) against Mumbai-based telecoms infrastructure provider GTL Infrastructure Ltd (GTIL) and unidentified officials in connection with an alleged fraud of ₹ 4,063.31 crore involving a consortium of 19 banks and financial institutions.Officials of 13 banks are under the national law enforcement agency’s gaze for allegedly assigning ₹ 3,224 crore dues of GTIL to an asset reconstruction firm for ₹ 1,867 crore without attempting to secure their loans from collateral securities.”Despite the dissent of Canara Bank and some other members of the consortium, 79.3% of the outstanding dues amounting to ₹3,224 crore were assigned to Edelweiss Asset Reconstruction Co (EARC) by 13 banks for a consideration of ₹ 1,867 crore, causing huge wrongful loss to the banks,” the CBI said in its FIR, dated August 16, 2023. ET has seen a copy of the FIR.The 13 banks, it said, included Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of Baroda, ICICI Bank, Punjab National Bank, Oriental Bank of Commerce, Andhra Bank, Bank of India, Axis Bank, State Bank of India, United Bank of India and Dena Bank.As per the CBI report, GTIL had loan outstandings of ₹ 11,263 crore towards a consortium of 19 banks/FIs. Inquiry findings said that back in 2011, GTIL expressed an inability to service interest/instalments on credit facilities availed from various banks/FIs. Following this, the banks went for a corporate debt restructuring (CDR), which failed. Subsequently, the lenders decided to go for strategic debt restructuring (SDR) in 2016, in which, out of the ₹11,263 crore outstanding loans, a debt of ₹7,200 crore was converted into equity shares, leaving an outstanding sum of ₹4,063 crore payable by GTIL to the lenders’ consortium.The CBI inquiry has also allegedly unravelled substantial funds diversion by GTIL to various vendors that were related parties having common directors and addresses with GTIL. A forensic study, in turn, revealed that a substantial chunk of these funds-supplied to vendors-were allegedly invested in European Projects & Aviation Ltd (EPAL), or GTIL or its sister concern Chennai Network Infrastructure Ltd (CNIL), as per the FIR.A GTIL source dismissed the allegations, saying the company had complied with all relevant sanctions, approvals and regulations. “The forensic audit report concluded, and was confirmed by the lead bank as follows: ‘There have been no instance of any fraud/diversion of funds’,” the company source said in a response to ET’s queries.Coal stocks sufficient to meet rising demand, says Union Minister Pralhad JoshiHouse rentals rise 4.9% in June quarter: MagicbricksRegulatory authority in e-commerce needed for protecting small players, says CAITAir India flyers can now enjoy simplified European travel experience with intermodal ticket partnershipBharat NCAP to help elevate vehicle safety standards in India: AutomakersLooking for local supplier-based electric vehicle system in India to offer vehicles at lower prices: RenaultTotal banking transactions at GIFT IFSC reach USD 508 billion by July 2023Amid declining luxury car market, Porsche unveils electrifying future plans for IndiaLifestyle International reports 46% growth in sales during FY 22-23Casa Grande has bought over 4 lakh square feet of land in a deal valued at around Rs 56.8 crore in Hyderabad