Central Bureau of Investigation
HYDERABAD: City-based Coastal Projects Limited (CPL), which is facing a CBI probe for Rs 4,736-crore loan fraud, is now embroiled in another controversy over its Cyprus deals.
In an FIR, the CBI alleged that as per a forensic audit, CPL had invested Rs 40 crore in Coastal Transnational Ventures Limited (CTVL), a wholly-owned subsidiary firm, in Cyrpus.
CPL had given a corporate guarantee of $15.6 million in favour of Exim Bank for the loans availed by CTVL for acquisition of shares in another Cyprus-based company. Bank guarantee was invoked and CPL had to pay Rs 102 crore (equivalent of $15.6 million) at the time of conversion. However, the amount receivable for CPL was converted into CTVL shares, the CBI alleged.