On 17 May 2023, the offices of GTL Limited located in Navi-Mumbai and Mumbai were searched by the Enforcement Directorate (ED). GTL is a telecom-focused infrastructure services company providing network services to Telecom operators, OEMs, and tower companies.
According to Enforcement Directorate (ED) officials, the documents seized from GTL Limited’s offices in Mumbai pertain to the company’s annual reports, term loan & balance details, and purchase register etc.
The premises of GTL Limited were raided by the Enforcement Directorate (ED) on May 17 at GTL Limited and GTL Infra at various locations in Mumbai in connection with a loan fraud case of ₹ 4,760 crores.
GTL Limited stated that no incriminating documents have been recovered from the premises and its management has fully cooperated with the Enforcement Directorate (ED) and also provided necessary information sought by the ED officials. The company has claimed that the normal operations of the business will continue.
Indian Central Bureau of Investigation (CBI) has registered an FIR against GTL Limited on 21 Jan 2023 against certain allegations. The company has neither serviced nor paid interest on its borrowings during ₹10,772.16 lakh in Q3 FY23 and ₹31,160.21 lakh during the period.
A petition was filed by a lender before the National Company Law Tribunal (NCLT) but was dismissed by its order dated 18 November 2022. But the said matter is pending before the National Company Law Appellate Tribunal (NCLAT) on appeal by the said lender.
The Balance Sheet of GTL Ltd reveals that the company has incurred cash losses during the last few years as a result of which its overall net worth has eroded and the company’s current liabilities are more than its current assets.
The company had a loss of ₹ 10,860.59 lakh in Q3 of FY23 and a loss of ₹ 27,148.33 lakh for the period.