CBI registers FIR against Trimax IT Infra for cheating SBI-led consortium of over Rs 862 cr

New Delhi: An FIR has been registered against Trimax IT Infrastructure and Services Ltd for cheating State Bank of India-led consortium of Rs 862.06 crore. CBI booked IT & Service Limited with its directors for allegedly cheating between 2009 and 2017. During the time period of 2009 and 2017, the company has been sanctioned the credit facilities under Consortium banking.

Officials on Monday states that the agency has also named TIISL managing director Surya Prakash Madrecha and director Chandra Prakash Madrecha as accused in the FIR, according to the PTI report.

 
According to FIR, the agency searched the nine locations including residential and office premises of the accused at Mumbai, Kolhapur, etc.

What is Consortium banking?

Under consortium banking or financing, several banks or financial institutions finance funds to a single borrower or project which is too large to be financed by a single bank or institution. All members in a consortium bank have equal ownership and no one bank has a controlling interest.

 

CBI spokesperson Mr. RC Joshi said the directors of the private company, allegedly acting in conspiracy with others, "manipulated the books of accounts, diverted the funds" released by banks and thereby, cheated seven consortium member banks, including State Bank of India, to the tune of Rs 862.06 crore, PTI mentioned.

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