31-year-old man held for fraud of Rs 300 crore loan, credit facilities

NEW DELHI: A 31-year-old man was arrested for allegedly misappropriating funds to the tune of Rs 300 crore availed as loans and credit facilities from various banks and financial institutions, police said on Friday. Vaibhav Sharma, Chief Finance Officer (CFO) of a Gurgaon-based company engaged in car dealership, was arrested on Thursday in connection with a 2018 case registered against him and the other directors of the firm for misappropriation of bank money, they said.

An action was taken by the Economic Offences Wing (EOW) of the Delhi Police after an authorised representative of one of the banks alleged that the directors of the alleged company — Rashpal Singh Todd and Mandhir Singh Todd and its CFO Vaibhav Sharma — duped their bank to the tune of Rs 102 crore, police said. In view of sufficient incriminating evidence on record, accused Rashpal Singh Todd and Mandhir Singh Todd were already arrested in this case and charge-sheeted, they added.

According to the complainant bank, the accused persons had approached their branch at Bahadurshah Zafar Marg, Delhi, for financial assistance in 2007. The alleged company engaged in dealership of Audi cars had been availing cash credit facility, trade advances etc for demo cars from the bank since 2007. It had also availed term loan, cash credit facility and bank guarantee since 2013 onwards, police said.

As per the terms and conditions executed between the bank and the alleged company, the accused persons had to furnish the details pertaining to the utilisation of the funds along with details of the stock which were hypothecated with the bank.