mumbai the recovery department of bank of india has initiated proceedings to declare pune buildtech pvt ltd part of d b realty group a wilful defaulter for failing to repay a rs 225crore loan sanctioned in 2013a legal notice issued by the banks law firm mv kini last month stated that the outstanding amount with interest due is rs 516 crore as of june 2020 the personal guarantors were shahid balwa vinod goenka both mds of d b realty and asif balwa the groups cfowhen contacted vinod goenka promoter and director of pune buildtech told toi we have given an offer to boi for a onetime settlement and close it they seem to have agreed to itboi officials did not respond to an email from toi seeking a commentthe credit facility was sanctioned for construction of a residential and commercial project but the bank has claimed the funds were siphoned off for other purposes the unit pune buildtech has defaulted in meeting its payment repayment obligations to the lender and has not utilized the finance from the lender for the specific purposes for which finance was availed of but has diverted the funds for other purposes said the bankboi had appointed anil khandelwal associates to carry out a forensic audit to identify the company and its related persons as wilful defaulter the audit report had found that after the credit line of rs 225 crore was sanctioned by boi the physical progress of the underlying project changed by 2 only and the cost incurred during the period 01102013 to 27042015 was rs 6886 crore on estimated basisthe bank said that instead of using the funds for construction purposes it was diverted elsewhere for instance rs 19 crore was utilised for repayment obligation of group concern majestic infracon pvt ltd which is also a borrower of boi another rs 607 crore was diverted to other group companies of pune buildtech to serve liabilities of the group these group companies were d b view infracon rs 29 crore marine drive hospitality realty pvt ltd rs 21 crore gokuldham real estate development company pvt ltd rs 8 crore and nihar constructions pvt ltd rs 3 croreit was observed that infusion of loan disbursed was not in proportion to progress of the project completion which further primarily indicates diversion of funds the bank saidthe banks legal notice has threatened civil and criminal proceedings including under the recovery of debts and bankruptcy act for the recovery of dues