3 arrested for defrauding Axis Bank of Rs 290 cr
DH News Service, Mumbai, Mar 19 2018, 23:43 IST
The accused allegedly produced fake invoices and manipulated bills through fake companies through letters of credit. DH file photo
Three Mumbai-based businessmen have been arrested by police for defrauding the Axis Bank to the tune of Rs 290 crore.
The businessmen - Bhawarlal Bhandari, Premal Goragandhi and Kamlesh Kanungo who are directors of Parekh Alluminex Ltd (PAL) - have been arrested by the Economic Offences Wing (EOW) of the Mumbai Police.
"It is a Rs 290 crore fraud involving a bank. We have arrested three persons so far roles of whosoever is concerned are being probed," a senior EOW official told DH on Monday.
The accused allegedly produced fake invoices and manipulated bills through fake companies through letters of credit.
The three accused have been remanded to police custody till March 21.
"We have booked the accused for cheating, forgery, breach of trust and criminal conspiracy and detailed inquiries are on," the official said, adding that the action was taken based on the complaint made by the bank.
There are chances that some bank officials would also have to face the probe.
" Our exposure is part of a lending arrangement involving around 22 banks and the bank had filed an FIR with the EOW, post declaring the exposure concerned as fraud. We are fully cooperating with the investigating authorities," official spokesperson of Axis Bank said in a statement.
The Axis Bank is part of a group of over 20 creditors with exposure to PAL.
Between 2011 and 2013, the accused availed a number of short term loans and credit facilities from Axis Bank, totalling Rs 290 crore.
PAL is already facing investigation by the CBI following a complaint by banks such as State Bank of India (SBI) and Indian Overseas Bank (IoB).
It is also facing insolvency proceedings at the National Company Law Tribunal (NCLT).
In 2017, the BSE had restrained PAL from accessing the securities market and further prohibited it from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly.
According to a report, Axis Bank in its complaint had mentioned five other PAL directors: Amitabh Parekh (who died in 2013), Rajendra Gothi, Devanshu Desai, Kiran Parikh and Vikram Mordani.
The fraud could run into several crores of rupees.
This is yet another bank fraud that has come to light in the wake of the Rs 11,400-crore PNB-Nirav Modi scam that involved multiple auditing and regulatory lapses.
The businessmen - Bhawarlal Bhandari, Premal Goragandhi and Kamlesh Kanungo who are directors of Parekh Alluminex Ltd (PAL) - have been arrested by the Economic Offences Wing (EOW) of the Mumbai Police.
"It is a Rs 290 crore fraud involving a bank. We have arrested three persons so far roles of whosoever is concerned are being probed," a senior EOW official told DH on Monday.
The accused allegedly produced fake invoices and manipulated bills through fake companies through letters of credit.
The three accused have been remanded to police custody till March 21.
"We have booked the accused for cheating, forgery, breach of trust and criminal conspiracy and detailed inquiries are on," the official said, adding that the action was taken based on the complaint made by the bank.
There are chances that some bank officials would also have to face the probe.
" Our exposure is part of a lending arrangement involving around 22 banks and the bank had filed an FIR with the EOW, post declaring the exposure concerned as fraud. We are fully cooperating with the investigating authorities," official spokesperson of Axis Bank said in a statement.
The Axis Bank is part of a group of over 20 creditors with exposure to PAL.
Between 2011 and 2013, the accused availed a number of short term loans and credit facilities from Axis Bank, totalling Rs 290 crore.
PAL is already facing investigation by the CBI following a complaint by banks such as State Bank of India (SBI) and Indian Overseas Bank (IoB).
It is also facing insolvency proceedings at the National Company Law Tribunal (NCLT).
In 2017, the BSE had restrained PAL from accessing the securities market and further prohibited it from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly.
According to a report, Axis Bank in its complaint had mentioned five other PAL directors: Amitabh Parekh (who died in 2013), Rajendra Gothi, Devanshu Desai, Kiran Parikh and Vikram Mordani.
The fraud could run into several crores of rupees.
This is yet another bank fraud that has come to light in the wake of the Rs 11,400-crore PNB-Nirav Modi scam that involved multiple auditing and regulatory lapses.