Central Bureau of Investigation is probing 10 companies, which have defrauded the erstwhile Global Trust Bank, which became sick due to mounting bad debts of over Rs 1,400 crore (Rs 14 billion) and was taken over by Oriental Bank of Commerce in 2004.
OBC had filed criminal complaints with the CBI against five companies till January and has named another five companies recently, official sources said.
The companies against whom complaint was made earlier for defrauding erstwhile GTB to the tune of Rs 172 crore (Rs 1.72 billion) are -- Petro Energy Products Company (Pepco), Pearl Distilleries, Shonk Technologies International, Unitel Software and Business India Publication.
"More cases are now being examined by CBI," sources said. When contacted, OBC chairman B D Narang confirmed the move but declined to give names.
Names of more companies, whose accounts reveal serious financial improprieties, have surfaced during due diligence exercise and the recent valuation of GTB losses.
OBC has detected that the actual loss of GTB runs into over Rs 1,400 crore.
Although the Delhi-based bank has made provisions worth over Rs 900 crore (Rs 9 billion), sources said the CBI investigations are in the process.
Internal investigations had revealed that GTB had taken high credit exposure in certain accounts even exceeding exposure norms prescribed by Reserve Bank.
Many of the NPA accounts of GTB reveal that deliberate attempts have been made to camouflage the positions of bad assets by making fresh loan sanctions to their sister or allied concerns including some of the front companies.
