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The CBI has filed an FIR against telecom infrastructure major GTL for allegedly diverting a substantial portion of a Rs 4,760 crore loan availed from a consortium of banks led by IDBI Bank, officials said.

The agency has booked the company, unidentified directors, public officials and vendors under IPC sections related to criminal conspiracy, cheating and provisions of the Prevention of Corruption Act, following a preliminary enquiry which showed that GTL had fraudulently obtained various credit facilities from consortium of banks, they said. According to the FIR, the company allegedly diverted or siphoned off a majority of the loan amount in conspiracy with its vendors, unidentified bank officers, among others.

The FIR has alleged GTL Limited was extending advances to vendors year on year without supply of material/goods, and eventually these advances were provisioned.

The GTL Limited was availing credit facilities from the consortium of banks, led by IDBI Bank. Following are the list of 24 banks who provided credit facilities to the company;

RBI Red flag

RBI in its letter dated U.A4.2016 advised lDBl Bank Ltd. to Red Flag the account of M/s. GTL Limited and to institute a forensic audit in the account of M/s GTL Limited. A reply was submitted by lDBl Bank Ltd in its letter dated 01.06.2016 to RBI wherein it was stated on behalf of the entire consortium lenders not to classify the account as Red Flagand also not to appoint a forensic auditor as it may delay the dues settlement and proposed actions as suggested by RBI may be deferred. it further revealed that RBI in its letter' dated 15th July 2016 again directed lDBl Bank Ltd to comply with the directions of its letter dated 01^st  April 2016 Accordingly M/s NBS and Co., Chartered Accountant was appointed to conduct the forensic audit of M/s GTL Ltd vide IDBI letter dated 30 July 2016.

Special Audit of the account of GTL Limited

Enquiry revealed that lDBl Bank had got conducted special audit of the account of M/s GTL Limited from April 2011 to Nov 2011 The special auditor, T.R.Chaddha & Co LLP, in its report submitted on 03.03.2012 has flagged the issue of Advance to vendors as under;

"Advances to Other Major Suppliers”

            The list of the other major material suppliers with whom advances of Rs. 1634.11 crores is outstanding as on 30.11.2011, out of the same, an amount of Rs 778.55 Crores is outstanding far more than one year and Rs 329.62 crores is outstanding for more than six months but less than one year. Top 5 of such parties constituting an amount of Rs.1403.41 Crores

GIL has not received the material till date from these parties and these purchase orders has been lying open Further, Terms of purchase orders doesn't mention the period within which delivery of materials should be made but it has the condition of making advance payment of 75% to 80% of PO value (which seems to be very high) and remaining amount of purchase order should be paid within 90 days from delivery and acceptance of material.

GTL has given additional advance of Rs.344 Crores to these parties during the month of July 2011 through the operations otherwise have already been affected, materials against earlier advances were not received and the deals were not coming through Further, no credit limits have been fixed for these parties.

Therefore the Special Auditor in its report clearly brought out the fact that GTL Limited has not received the material till date from these parties.

Forensic Audit of M/s GTL Limited

 As Forensic Auditor appointed by the IDBI bank, M/s NBS and Co conducted Forensic Audit of M/s GTL Limited with the audit period as FY 2009-10, FY 10-11, and FY 2011-12. The Forensic Audit was completed on 31st October 2016. In addition to the major adverse finding as mentioned in Para 3 above, the Forensic Audit Report also emphasized that GTL Limited has made substantial advances for the procurement of material to some of the vendors even though the purchases made from these parties were much lesser as compared to the advances. That out of Rs.1397.97crores outstanding from the vendors as on 31st March 2012, Rs.1141.94 crores given as advance to vendors pertain to 2010-11 and no materials have been received against such advances.

Thus in view of the aforesaid fact and circumstances, it is revealed that M/s. GTL Ltd. had fraudulently received various credit facilities and subsequent thereto diverted/siphoned off the majority of loan amount in conspiracy with vendors, unknown bank officers etc.

Background of GTL Limited

GTL Limited was incorporated on 23rd December 1987 as a private limited company and was converted into a public limited company on 12th September, 1991. lt is engaged in the business of providing telecom network deployment services, operations and maintenance services, professional services, network planning and design services and energy management services to telecom operators in India and international markets Mr. Manoj Tirodkar and Global Holding Corporation Pvt Ltd (GHC) are the Promoters of the Company.