Loan fraud case: CBI books Hyderabad-based Jupiter Bioscience, Kever Pharma

Central Bureau of Investigation (CBI) registered a conspiracy case against a city-based Jupiter Bioscience Limited for allegedly duping Industrial Finance Corporation of India (IFCI) to the tune of Rs. 50.79 crore.

Apart from Jupiter Company, the CBI registered the case against its CMD K Venkata Ramana, Kever Pharma Private Limited, valuer DSK Avadhani and other persons under Section 120B (criminal conspiracy) read with 420 (cheating) of the Indian Penal Code (IPC) along with provisions of Prevention of Corruption (PC) Act, based on a complaint lodged by IFCI DGM M Srinivasa Rao.

The CBI FIR said the Jupiter Company availed credit facilities amounting to Rs.60 crore from IFCI during 2009-2010 for repayment of the then existing debt to the extent of Rs.40 crore and another Rs.20 crore for expansion of its business. After funds were disbursed and utilized by the borrower company in February 2010, it committed persistent defaults in repayment of the credit facility availed due to which the credit account became NPA in the books of IFCI on December 31, 2011.

As of date, the total outstanding was Rs.52.97 crore. During the recovery proceedings initiated by the IFCI, it could only recover an amount of Rs.2.19 crore by the sale of securities that were mortgaged. Thereby, the IFCI suffered a wrongful loss to the tune of Rs. 50.79 crore, the CBI FIR said.

In the complaint, it was also stated that the staff accountability was examined and departmental action was taken against the officials found responsible. The IFCI has also requested the CBI to investigate the role of public servants, if any, in the case.