The Delhi High Court convicted the persons for defrauding the Central Bank of India by availing credit facilities on the basis of bogus securities.
The written complaint was filed by K. K. Gupta, General Manager, Central Bank of India, New Delhi. It was alleged that Satish Chand Jain, Ashok Jain, and Sanjay Gupta entered into a criminal conspiracy and cheated/defrauded Central Bank of India, Parliament Street branch and Paharganj branch New Delhi by availing credit facilities in the name of above three firms namely M/s Aman Trading Company, M/s Creative Traders (from Parliament Street branch) and M/s Paramount Insulation Company (from Paharganj Branch) on the basis forged/bogus securities and financial papers causing loss to the bank to the tune of Rs.387.09 lakhs.
In the investigation it was revealed that the accused, with an intention to cheat the bank, floated a bogus firm and they never existed at the addresses.
It was alleged during the investigation that even the government officials were involved in the fraud as not only the status report was prepared only on the basis of declaration made by the borrower without making any enquiry/physical verification, but also the false credit status report was prepared.
However, the court acquainted all the bank officials who were alleged to have been involved in the fraud.
The court convicted Fraudsters namely Keshav sharma, Sanjay Gupta, Sharad Jain and other private persons were found guilty and sentenced for different terms. However, the court acquainted all the bank officials. The Special Judge, Harish Kumar said that the convict will be heard on the point of sentence on January 30, 2021 at 2.00 PM.
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