CBI registers 4 separate cases in bank fraud of Rs 940 crore

New Delhi [India], January 6 : The Central Bureau of Investigation (CBI) has registered four separate cases related to bank fraud of approximately Rs 940 crore and conducted separate searches in Gujarat, Madhya Pradesh, Andhra Pradesh and Telangana.
According to the official release, one of these cases was registered on a complaint from Bank of India against a private company based at Gujarat's Ahmedabad and others including its Directors, unknown public servants and unknown others on the allegations of causing loss of approximately Rs 631.97 crore to Bank of India in the matter of various credit facilities.
It was further alleged that during the period 2012 to 2016, the Directors of the borrower company were enjoying Fund based and Non-Fund Based credit facilities from the Bank of India.
"The Forensic Audit of the company conducted by the bank revealed that the company was allegedly involved in diversion / siphoning off funds through its subsidiary/associate companies which were having common Directors," it said.
The company was also allegedly involved in transactions with suspicious dealers involved in issuing false bills without actual delivery of goods. It was also alleged that the company started facing liquidity problems and failed to pay the dues to the bank.
"Subsequently the account was classified as Non-Performing Assets (NPA) with an outstanding amount of approximately Rs 631.97 crore, thereby, causing loss to the Bank of India," the release reads.
CBI conducted searches at six locations in Ahmedabad at the premises of the accused including private company which led to the recovery of Incriminating documents.
The second case was registered against a private company based at Andhra Pradesh's Prakasam and others including its Chairman; five Directors, two more firms; unknown public servants and unknown private persons on complaint from Union Bank of India, Vishakhapatnam.
It was alleged that the said private company and its Directors in conspiracy with others fraudulently availed credit facilities by submitting false/ manipulated financial statements, diverted loan proceeds and thereby caused loss of approximately Rs 228.02 crore to the Bank.
The searches were conducted at eight places including in Prakasam district of Andhra Pradesh, which led to the recovery of incriminating documents.
The third case was registered against a private company based at Banjara Hills, Hyderabad and others including its Directors; private persons unknown public servant(s) and private person(s).
"It was alleged that during the period 2014 to 2017, the said company represented by its Directors availed loans from Bank of Baroda, Khairatabad Branch, Hyderabad on the basis of inflated project cost; diverted loan funds for other than business activities and for personal gains; submitted false and fabricated stock statements to the Bank to conceal their irregularities; wilfully defaulted in repayment and caused loss to the tune of approximately Rs 44.60 crore to bank," it added.
The searches were conducted at three places including in Hyderabad which led to the recovery of several incriminating documents.
The last case was registered on a complaint from Punjab National Bank against a private company based at Madhya Pradesh's Raisen and others including its Directors; unknown public servants and unknown others on the allegations of causing loss of approximately Rs 35.55 crore to the Punjab National Bank in the matter of various credit facilities.
"It was alleged that during the period 2012 to 2016, the Directors of the borrower company in conspiracy with others induced Punjab National Bank to sanction facilities including Cash Credit and Term Loan," the release added.
It was further alleged that the borrower company disposed of fixed assets at meagre prices and the funds so received were diverted by the Directors of the borrower company.
The account of the company was declared as NPA due to non-payment of interest or instalments, thereby causing an alleged loss of approximately Rs 35.55 crore to the bank.
The CBI conducted searches at three locations in Raisen and Bhopal at the premises of the accused including private company which led to the recovery of incriminating documents.
The investigation in all the cases is continuing.