In response to a complaint by IFCI limited, the Central Bureau of Investigation (CBI) has booked Jupiter Bioscience Limited (JBL) and its promoters for Rs 50 crore loan fraud.
The company is accused of inflating the value of collateral to secure the loan and not paying up when it went under. Company CMD Kalavakolanu Venkata Ramana, Kever Pharma (P) Ltd, valuer S K Avadhani and others are among the accused.
A loan of Rs 60 crore had been taken by JBL from IFCI in 2009-2010 by mortgaging properties in Gaddapotharam in Medak district, a plot owned by the CMD in Amberpet, and shares of Kever Pharma Ltd. As a result of JBL’s request, the IFCI had authorized the Rs 60 crore loan.
In December 2011, the account became a non-performing asset (NPA). During the investigation, it was found that the value of collateral securities was exaggerated and a false report was submitted. The CBI has charged the valuer with misrepresenting facts to defraud IFCI.
In December 2009, the property was classified as ‘commercial,’ and in August 2012, it was classified as ‘residential.’ The property was sold in e-auction by IFCI in December 2012 for Rs.1.4 crore against the valuation of Rs 9.4 crore in December 2009.
According to the CBI, the values of both collateral properties stood at drastically reduced levels, suggesting they were deliberately inflated at the pre-disbursement stage.
The outstanding balance stands at Rs.52.97 crore as of date. By selling the mortgaged securities, the IFCI was only able to recover an amount of Rs.2,19 crore during the recovery proceedings. According to the CBI FIR, IFCI thus suffered a wrongful loss amounting to Rs. 50.79 crore.
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According to the complaint, the staff accountability was also assessed and departmental actions were taken against the officials found accountable. Additionally, the IFCI asked the CBI to investigate the role of public servants in the case, if any.
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