New Delhi, Dec 7 (IANS): The CBI has registered a case against Unitech Managing Director Sanjay Chandra, his father Ramesh Chandra and brother Ajay Chandra for allegedly cheating a public sector bank of Rs 198 crore.

The agency also conducted searches at the premises of the accused in Delhi and Gurugram.

The central agency had registered the First Information Report (FIR) on December 1 on charges of cheating, criminal breach of trust and criminal conspiracy of Indian Penal Code (IPC) as well as sections of the Prevention of Corruption Act, based on a complaint filed by Canara Bank on November 18.

The agency then initiated an inquiry and later registered a case to probe the allegations thoroughly.

It has been alleged that Unitech had been granted credit facilities under different banking arrangements through which it availed loans against personal and corporate guarantees, apart from mortgaged properties.

However, the firm allegedly sold the properties without informing the bank and diverted and misappropriated funds as well.

As per CBI FIR, the bank owed Rs 198.09 crore as an outstanding liability in form of open cash credit and bank guarantees till May 28 this year.