Central agency alleges Gupta Power Infra manipulated loan facilities worth over ₹3,590 crore

According to a statement released by the Enforcement Directorate, Gupta Power Infrastructure Limited reportedly inflated its borrowing capacity to secure massive working‑capital loans from a consortium of banks. The consortium’s total exposure to the firm is estimated at approximately ₹3,590 crore, with Kennara Lead Bank alone approving about ₹1,174 crore.

The ED claims that GPIL altered its drawing power and overstated its inventory in audited financial statements, thereby qualifying for additional credit. Specifically, the company allegedly presented project and EPC stocks worth nearly ₹280 crore as eligible collateral, far exceeding the actual stock on hand.

Investigators also highlighted discrepancies in the company’s reported dues. Documents suggest that GPIL listed doubtful and disputed liabilities, including claims rejected by the LCILT, as “eligible dues.” A gap of roughly ₹1,115.15 crore was identified between the declared liabilities and the actual figures, indicating possible inflation of assets to expand borrowing limits.