CBI books Shakti Bhog Foods in Rs 3,269-cr bank fraud case
According to the SBI grievance, the administrators allegedly falsified accounts and cast paperwork to siphon off public funds.
The 24-year-old firm, which is into manufacturing and promoting wheat, flour, rice, biscuits, cookies and many others., had grown organically because it ventured into food-related diversification over a decade with a turnover progress of Rs 1,411 crore in 2008 to Rs 6,000 crore in 2014, the bank stated.
The progress got here to an abrupt halt in 2015 with the account turning right into a Non-Performing Asset (NPA) and it was finally declared a fraud in 2019.
The account turned an NPA on account of stock losses owing to a steep fall in paddy costs, underutilisation of capital expenditure in the rice and paddy segments and a delay in the tie-up funds to tide over losses, an investigation report by the bank on employees accountability had famous in 2017.
The forensic audit executed by the bankers identified that the corporate, in its account books of monetary yr 2015-16, confirmed that its stock value over Rs 3,000 crore received broken as a result of pests and was bought at considerably low costs.
This was contradictory to the inventory and receivable audit report, which confirmed that the corporate had a inventory of over Rs 3,500 crore in September 2015, its warehouses have been totally stocked and not one of the stock was out of date or gradual shifting, the bank alleged in its grievance.
The report additionally stated the corporate had an insurance coverage coverage for defense towards hearth, earthquake and different perils however no claims have been made about inventory getting broken due to pests.
The accounts additionally didn’t present any receivables owing to a sale of broken shares at low costs, it stated.
The report additionally identified round-tripping of funds and suspicious funds made by the corporate, apart from fudging of account books, the officers stated.
