Central agency alleges GPIL inflated inventory to secure ₹2,800 crore credit

The ED claims that Gupta Power Infrastructure Ltd manipulated its drawing power and borrowing capacity by overstating inventory figures. According to the agency, the company presented stock levels far above those shown in audited financial statements, thereby qualifying for working‑capital facilities worth approximately ₹2,800 crore.

The consortium of banks, led by Kenra Lead Bank, had an overall exposure of about ₹3,590 crore, with Kenra alone approving a limit of ₹1,174 crore. ED officials allege that GPIL classified disputed and doubtful receivables as "eligible" claims, creating a gap of roughly ₹1,115.15 crore between reported and actual liabilities. This alleged inflation allowed the firm to push its borrowing ceiling higher than justified.