The Cubbon Park police of Bengaluru, looking into Rs 712 crore fraud allegations against Nitesh group of companies, one of the top real estate group in Karnataka, have secured crucial documents in connection with 'project diversion', 'refinancing' and 'not showing timely progress of projects' after securing the loans from Yes Bank.
DCP Central, Anucheth, explained that, "we had received a complaint on three counts by the Yes Bank against three entities of Nitesh Group of companies for using loans to different purposes violating the loan agreements. Firstly, it is diversion of funds to other projects, secondly, refinancing of loans to pay up different loans and thirdly, showing no timeline progress of the projects."
"Notices have been issued to the accused persons and documents have been obtained. We are conducting a forensic audit in this connection and awaiting the report," he explained.
A complaint was registered in Bengaluru in connection with Rs 712 crore frauds at Cubbon Park police station against Nitesh group of companies by Yes bank manager Ashish Vinod on June 16.
In his complaint, Vinod alleged that the Nitesh Estates Ltd, Nitesh Housing Development Pvt Ltd and Nitesh Urban Development Pvt Ltd committed fraud. The FIR included promoter, Nitesh Shetty, and names of 7 others. It also mentioned charges against key promoters and directors.
The accused persons, whose office is located on M G Road, have been carrying out financial transactions with Mumbai and Bengaluru units of Yes Bank Ltd since 2016. They have secured loans amounting to Rs 712 crore for various real estate projects over a period of time and failed to pay back, said Ashish Vinod Joshi, Yes Bank manager in his complaint.
The loans were secured between February 1, 2016 and June 19, 2021 for more than 10 prestigious projects. The police have registered a case under IPC sections 34 (Acts done by several persons in furtherance of common intention), 406, 409 (Criminal breach of trust) and 420 (Cheating).