The Economic Offences wing of the CBI, Chennai, has filed cases against Nellore-based Shantilal and Sons Jewellers and Shanti Kalash Jewellers for allegedly misappropriating bank funds and cheating Canara Bank to the tune of ₹7,013.20 lakh, at the Principal Special Judge for CBI Cases in Visakhapatnam on Tuesday.
As per the FIR filed by the CBI, based on a complaint lodged by the AGM of Canara Bank, Stressed Assets Management Branch, Hyderabad, Shantilal and Sons Jewellers had availed a term loan of ₹538 lakh and Secured Overdraft (SOD) of ₹1,140 lakh from Syndicate Bank (now Canara Bank), Dargamitta Branch, Nellore, on February 25, 2014. The SOD was later enhanced to ₹2,400 lakh on July 29, 2015.
In another instance, Shanti Kalash Jewellers had availed a term loan of ₹479 lakh and SOD of ₹1,140 lakh from the same bank on February 4, 2014. The term loan was later enhanced to ₹521 lakh on March 13, 2014, and the SOD was enhanced to ₹2,400 lakh on August 13, 2015.
The accounts of both the firms became non-performing assets (NPA) in 2018, and it was alleged that the borrowers in both the accounts had diverted the available stock hypothecated to the bank without the knowledge of the bankers. It was also alleged that in the guise of renovation of the shop, the borrowers had sold the stock and misappropriated the bank’s funds and cheated the bank to the tune of ₹7,013.20 lakh.
Cases had been booked against Shantilal Seshmalji, Shantilal, Santri Bai, Kamlesh Kumar and Shankarlal.