CBI files bank fraud case against IL&FS Energy Development over alleged ₹212 crore loss to Canara Bank: Details here
The Central Bureau of Investigation (CBI) has registered a bank fraud case against IL&FS Energy Development Company Limited (IEDCL), its former managing director and other senior officials for allegedly causing a loss of ₹212.34 crore to Canara Bank, officials told news agency PTI on Friday.
The case follows allegations that funds borrowed for renewable energy and infrastructure projects were diverted to other activities, according to the FIR.
The company had been sanctioned a short-term loan of ₹100 crore under a multiple banking arrangement by the erstwhile Syndicate Bank for 12 months. The funds were intended to finance its solar park, wind energy and solar energy projects, which were being implemented through various project companies, the FIR alleged.
The FIR also alleged that the London branch of the erstwhile Syndicate Bank had extended a term loan of $50 million to the company. The facility was intended for onward lending to the borrower's existing and new special purpose vehicle (SPV) projects in the infrastructure sector, as well as other uses permitted under the Reserve Bank of India's prevailing External Commercial Borrowings (ECB) guidelines.
A forensic audit conducted by Canara Bank, into which Syndicate Bank was merged, reportedly found that the borrowed funds had been diverted and used for purchases and activities other than those for which they were sanctioned.
According to the FIR, the funds were routed through group and associate entities and other transactions. The transactions allegedly involved inadequate supporting documentation and questionable accounting treatment, resulting in a wrongful loss to the bank.
The investigating agency has also alleged that the company misrepresented its financial position.
"It is further alleged that the company has also misrepresented the financials to conceal its worst financial position," the FIR said.
The allegations are part of the case registered by the CBI. The registration of the case does not establish guilt, and the allegations remain subject to investigation and the legal process.
Anjali Thakur is a Senior Assistant Editor with Mint, reporting on trending news, entertainment and health, with a focus on stories driving digital conversations. Her work involves spotting early signals across news cycles and social media, sharpening stories for SEO and Google Discover, and mentoring young editors in digital-first newsroom practices. She is known for turning fast-moving developments—whether news-driven or culture-led—into clear, tightly edited journalism without compromising editorial rigour.<br><br> Before joining Mint, she was Deputy News Editor at NDTV.com, where she led the Trending section and covered viral news, breaking developments and human-interest stories. She has also worked as Chief Sub-Editor at India.com (Zee Media) and as Senior Correspondent with Exchange4media and Hindustan Times’ HT City, reporting on media, advertising, entertainment, health, lifestyle and popular culture.<br><br> Anjali holds a Bachelor of Arts degree from Miranda House, and is currently pursuing an MBA, strengthening her understanding of business strategy and digital media economics. Her writing balances newsroom discipline with a clear instinct for what resonates with readers.
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