The complaint was filed by the Punjab National Bank. CBI alleged that Saptarishi Hotels is the developer of a 4-star hotel, serviced apartments and a convention center named Double tree by Hilton.
The property is being built under a public-private partnership with the Dr. YSR National Institute of Tourism & Hospitality Management (NITHM).
NITHM leased 3 acres of land for 33 years in November 2010 from Saptarishi Hotels.
CBI alleged that Maha Hotel Projects and its promoters LN Sharma, Yash Deep Sharma and Suneeta Sharma had obtained a credit facility of Rs 108 crore of PNB and Rs 96 crore of a term loan from Punjab & Sindh Bank which amounts to to a total of Rs 205 crore from a consortium of banks.
“The accused was unable to execute the securities required for the benefit of the bank to guarantee the timely repayment of the loan amount. The original start date for project activities is January 31, 2014, but it has been moved to February 2016 and as a result the start of loan repayment has been extended. due to non-payment loan turned into NPA in May 2016. Despite several reminders by the lander barking, the accused failed to submit the information to perform the forensic check, ”CBI alleged in the FIR.
The managers of the Saptarishi and Maha hotels embezzled the funds.
Besides the two accused companies, CBI also named LN Sharma, Yash Deep Sharma, Suneeta Sharma, Agastya Trade Links, Khandal Trading India, Rajanigandha Distributors, Symbiosis Airworks and others.