CBI Nabs Jagmohan Garg, MD of Tirupati Infraprojects, in Massive Bank Fraud Case

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INVC NEWS
New Delhi  : The Central Bureau of Investigation (CBI) has arrested Jagmohan Garg, the Chairman and Managing Director of Tirupati Infraprojects Pvt Ltd, in connection with a bank fraud case amounting to Rs 289.15 crore. The company is accused of diverting the loan amount, which was taken for a high-end hotel project in west Delhi, for illegal purposes.

The CBI had filed a First Information Report (FIR) against the company on May 25, 2022. The investigation revealed that the company, along with other banks including Bank of India, Union Bank of India, Canara Bank, Bank of Baroda, and UCO Bank, misappropriated the loan amount, causing a loss of Rs 289.15 crore to a public body.

Bank of India claimed that the cumulative loss to the banks due to rising dues had exceeded Rs 979 crore as of December 13, 2021. The consortium of banks had provided a term loan of Rs 300 crore to Tirupati Infraprojects between 2009 and 2014 for the construction of Hotel Radisson Blu and commercial spaces in Paschim Vihar, New Delhi. However, the company started showing financial stress in 2012 and eventually became a non-performing asset (NPA) in 2014.

According to the complaint filed by Bank of India, Tirupati Infraprojects, its promoters, and directors engaged in fraudulent and dubious transactions, causing wrongful loss to the lending banks while benefiting themselves. The company allegedly diverted and misappropriated the income generated from the project.

During the investigation, the CBI conducted searches at the accused’s premises and recovered incriminating documents. The agency also examined witnesses, officials from the borrower company, and bank officials.

Jagmohan Garg was produced before a special CBI court and remanded in the agency’s custody until July 13.

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