There is more trouble at the door of insolvency hit Educomp Solutions Ltd (ESL). According to officials in the know, the Central Bureau of Investigation (CBI) has registered a bank fraud case against Educomp Solutions Ltd (the borrower company), Shantanu Prakash (Managing Director and Guarantor), and Jagdish Prakash (a Guarantor).
Edu Smart Services Private Ltd officials have also been named in the FIR filed by the CBI.
“The borrowing company and its directors, guarantors and unknown others conspired and committed the acts of forgery. It includes valuable securities, used forged documents as genuine, diverted and siphoned off the banks’ funds and cheated the lending banks to the tune of ₹1955.36 crore,” the CBI said.
Since, SBI Bank lodged a complaint on behalf of IDBI Bank, Union Bank of India, Central Bank of India, Syndicate BankThese banks have declared this account as fraud and reported to the RBI.
The ESL cheated and defrauded SBI and 12 other banks in a consortium. The other banks in the consortium are Axis Bank, J&K Bank, StanChart Bank, Canara Bank, ACRE, and IndusInd Bank. Hence, these banks are also in process to examine fraud angle in this account.
Since, at 8 places the searches conducted including office premises of ESL and Edu Smart Services Private Limited. The residential premises of directors and guarantors. Delhi, Gurugram, Dehradun the searches conducted. Hence, the ESL loan accounts became non-performing assets in 2016.
Fresh term loans were disbursed to ESL by the banks. With future receivables of ESPL also transferred to it, the officials said.
Additionally, ESL and Edu Smart Services Private Ltd through its Directors had forged the tri-partite contracts with the schools. They induced banks for getting disbursement of term loans. That included either non-implemented, cancelled, closed or pre-closed contracts in the list of executed contracts.Therefore Educomp Solutions Ltd have evolved in Bank Fraud case. In 2016 loans declared as non-performimg.