The Central Bureau of Investigation (CBI) has registered a case against a private company based at Mumbai and others including its 04 Directors/Guarantors; unknown Public Servants & unknown private persons on complaint from Bank of Baroda on the allegations of Bank fraud of Rs. 4957.31 crore (approx) to the consortium of 17 banks. The account of said Private Company was classified as NPA on 31.12.2017. Subsequently the accounts were also declared as fraud by the members of the consortium banks.
The company was into development of infrastructure projects, which included designing, engineering & execution/construction of complex, integrated water transmission, distribution projects, water treatment plants, mass housing projects, precast design & construction, road construction and urban infrastructure etc.
It was further alleged that the accused had diverted huge amount of money from the borrower company to its related parties & subsidiaries and subsequently, these advances were written-off by the company. It was also alleged that the company had entered into fictitious sales & purchase transactions in order to inflate its turnover. Further, to avail credit facilities from the lender banks, the work-in-progress was allegedly inflated and huge amount of Vender Liability was directly adjusted against Customer Account without having any supporting document for the same.
Searches were conducted today at 4 locations including at Mumbai, Thane, etc. which led to recovery of several incriminating documents & articles.
In another case, the CBI has registered a case against a Private Company based at Mumbai and others including unknown Public Servants & unknown persons on complaint from Punjab National Bank involving bank fraud of Rs. 1688.41 crore (approx) to the consortium of 10 banks. The account of said company was classified as NPA by the lead bank i.e. Punjab National Bank on 20.03.2018 and subsequently its account was also declared as fraud by the members of the consortium banks. The company was stated to be involved in the business of manufacturing and supply of cement in India. It was alleged that the Borrower Company approached Punjab National Bank and other members of consortium banks for setting up a field cement facilities at Village Mora, Surat & Village Thumdi, District Kutch, (Gujarat) for manufacturing various types of cements.
It was further alleged that the accused had diverted huge amounts from the borrower company to its related parties and subsidiaries. The credit facilities obtained from the banks were allegedly diverted in violation of sanctioned terms & conditions. It was also alleged that the company had opened account in non-consortium bank in violation of terms & conditions and received huge amount in those accounts which were subsequently diverted. The huge amount of transactions were allegedly made by the said Private Company with shell companies.
Searches were conducted today at 3 locations including at Mumbai, Jaipur, etc. which led to recovery of several incriminating documents & articles.
One more instance was found where the CBI has registered 04 separate cases on complaints from Canara Bank, Punjab National Bank, IDBI Bank Ltd. & EXIM Bank respectively against the accused and others including a private company, its Director’s, MD etc & unknown public servants/persons on the allegations of Bank Frauds of total Rs. 217.37 crore (approx).
The first case, was registered against the private company and others including its Directors, MD etc & unknown public servants/unknown others on the allegations of defrauding e-Syndicate Bank (now Canara Bank) to the tune of Rs.30.49 crore (approx). It was further alleged that the said private company which was in the business of pipe manufacturing & pipe coating, availed credit facilities from e-Syndicate Bank and thereafter diverted the funds into its subsidiary companies.
The second case was registered against a private company and others including its Directors, MD etc & unknown public servants/unknown others on the allegations of defrauding Oriental Bank of Commerce (now merged with Punjab National Bank) to the tune of Rs. 51.90 crore (approx). It was further alleged that the said private company availed credit facilities in order to execute work orders received from GAIL & NTPC. It was also alleged that the accused deliberately siphoned off the money received from the projects of GAIL & NTPC without informing Oriental Bank of Commerce.
The third case was registered against said private company and others including its Directors, MD etc & unknown public servants/unknown others on the allegations of defrauding IDBI Bank Ltd. to the tune of Rs. 29.06 crore (approx). It was further alleged that the loan received from the bank for various projects of the company were utilized for purposes other than for which it was sanctioned, like repayment of dues of other banks etc.
The fourth was registered against private company and others including its Directors, MD etc & unknown public servants/ unknown others on the allegations of defrauding Export Import Bank of India (EXIM Bank) to the tune of Rs.105.92 crore (approx). It was further alleged that the accused availed credit facilities in order to execute work orders but deliberately diverted the money received for other purposes.
Searches were conducted today at 12 locations including at Mumbai (8) and one each at Damn, Kutch, Noida & Delhi at the premises of the accused/entities which led to recovery of incriminating documents/articles. During searches at the premises of Whole Time Director of private company at Mumbai, the foreign currency USD 90413 (approx) and cash of Rs.1.99 crore (approx) were recovered.
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