CBI registers case against Kolkata-based Visa Power Ltd for Rs 1964 cr bank fraud


A case has been filed by the Central Bureau of Investigation (CBI) against Visa Power Ltd. of Kolkata for allegedly cheating a group of 14 banks by syphoning and diverting money to the tune of Rs. 1964 crores.
According to the FIR investigating the incident, Visa Power Ltd., a wholly-owned company of Visa Energy Ventures Ltd., a wholly-owned subsidiary of Visa Infrastructure, is building a domestic coal-based thermal power project in Raigarh, Chhattisgarh, with a generation capacity of 1200 MW.
The company’s Chairman Vishambaran Saran, Chairman and Managing Director Vikas Agarwal and Joint Managing Director Subrato Trivedi have been named in the FIR.
The borrower company Visa Power represented by its directors had approached the Station Square branch, Bhubaneswar of the Punjab National Bank for a financial facility and presented financials and projections of the company to the bank and sought financial assistance and caused the bank to believe that the said loan limit the business of the company would grow.
The project was to be executed in two phases of 5600 MW each. Phase I has been financed through a consortium of 14 lenders with PNB as the lead bank involving a TL limit of Rs 1964 crores (Rs 394 sanctioned by PNB).
It is observed from the audited financial statements of Visa Power Ltd. (VPL), a sum of Rs 60.08 crores and Rs 15.60 crores have been paid by VPL to Visa Reality Ltd (VR as a capital advance in the FY 2011-12 and FY 2012-13, respectively.
Such capital advance has been utilized by VRL for buying equity and preference shares in the related parties of VRL and VPL ( Visa Minmetal Ltd.) The nature of the transaction indicates that the accused company intending to misappropriate the bank money has diverted the fund, the FIR reads.
In view of facts and circumstances, it is clear that the accused persons have jointly hatched a conspiracy against Public Sector Banks with the intent to cheat banks by diverting/siphoning money committed various offences under the provision of IPC, it further reads.