The CBI booked Arjun Singh Oberoi, director of Golden Jubilee Hotels, as well as its CEO and managing director Laxmi Narayan Sharma, in connection with an alleged fraud in connection with a default of more than Rs 1,285 crore in a consortium of seven banks led by the Bank of Baroda, officials said Thursday.
The agency also carried out searches at various locations in Hyderabad in connection with the case, they added.
Oberoi is also the Managing Director of EIH Limited, which operates the Oberoi, Trident and Maidens hotel chains.
In addition to Oberoi and Laxmi Narayan Sharma, the Central Bureau of Investigation (CBI) also named Neha Gambhir and Yashdeep Sharma in the case registered under sections of the Indian Criminal Code (IPC) relating to criminal association and cheating. , in addition to the provisions for the prevention of corruption. Act.
It is alleged that Golden Jubilee Hotels obtained credit facilities in the amount of over Rs 728 crore in 2009-15 in the form of term loans and bank guarantees from the consortium comprising Bank of Baroda, the former Corporation Bank , the Punjab National Bank, the Punjab and Sind Bank, the former Syndicate Bank, the Jammu and Kashmir Bank and the Bank of Maharashtra, they said.
When the company failed to meet loan repayment deadlines, the banks performed a forensic audit by Ernst and Young, who declared the account fraudulent.
“It is argued that the borrowing company, its promoters, as well as other unknown persons and entities, as part of a well-woven criminal conspiracy … and with the dishonest intention of causing undue loss to the bank consortium led by Bank of Baroda for to the tune of Rs 1,285.45 crore plus unbilled interest until September 30, 2020 and unjustified gains for themselves, embezzled and siphoned off funds paid to them, embezzled dishonestly the loan amount, ”alleged the banks in the complaint.
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