The CBI has booked Delhi-based JMD Oils Private Limited and others for allegedly cheating a consortium of six banks of ₹848.49 crore.
The case has been registered on a complaint from the Indian Overseas Bank (IOB) on behalf of all the lenders. Among those named as accused are JMD Oils, Krishan Dhingra, Naresh Dhingra, Ramji Lal Sharma and Gulshan Kumar Dhingra.
The company is into production of edible oils. It has one manufacturing unit in Gujarat’s Gandhidham and 22 depots for managing its operations. It had started taking credit facilities from the IOB in 2004. The other lenders joined in later under the consortium arrangement.
The loan account was declared non-performing asset by the banks from January to April 2015 due to non-repayment of the dues. However, they reported it to the RBI as a fraud in March-May 2019.
An audit revealed that the funds were allegedly siphoned off through fake purchases and sales reported by the company. At least in 438 instances, goods worth ₹242.54 crore were shown to have been transported from one State to another using the same vehicle on consecutive days.
There were 38 instances wherein goods worth ₹11.89 crore were shown to have been taken to different States through the same vehicle on the same day.
The registration numbers of vehicles, which purportedly transported goods worth ₹46.71 crore, recorded in the papers were found to be of buses, two-wheelers, motor cabs and excavators.
According to the FIR, in most cases, the entire business cycle of execution of trade — involving the issuance of letters of credit, purchase of goods, transportation and submission of the letters of credit to the issuer bank — was completed in one day.
The company allegedly booked fake purchases amounting to ₹527.17 crore of the ₹653.68 crore verified during the audit. Several other irregularities were detected.