New Delhi, May 18 : The Enforcement Directorate (ED) has conducted searches at several locations belonging to Mumbai-based company GTL Ltd in connection with allegations of fraudulent diversion of bank loan funds by the company and its promoters. GTL Ltd operates in the telecom network services sector. According to official information, the case, filed under the Prevention of Money Laundering Act (PMLA), is based on an FIR lodged by the Central Bureau of Investigation (CBI) in January this year. According to the case, the accused company allegedly obtained loans from a consortium of banks led by IDBI Bank between 2009 and 2012. The CBI's investigation was prompted by the findings of a forensic audit, which revealed that as of March 31, 2012, the company had outstanding dues of Rs 1,398 crore from its vendors. Of this amount, Rs 1,142 crore had been advanced to vendors in the fiscal year 2011, but no equipment had been received against the payments. The CBI alleges that the accused company fraudulently obtained various credit facilities and diverted a significant portion of the loan amount for its own benefit, in collusion with vendors and bank officials. "The lenders failed to adequately monitor the utilisation of the loans they sanctioned, and there was a delay in taking corrective action," said the CBI in its FIR. The CBI has charged the accused with cheating and offences under the Prevention of Corruption Act, 1988. The ED is currently investigating the money laundering aspect of the case. /IANS