CBI files 2 separate cases of bank frauds worth Rs 1,438 cr and Rs 710 cr

The Central Bureau of Investigation (CBI) has filed two separate cases of bank fraud over complaints from the State Bank of India, and a Bank of India-led consortia.

In one case, as per a complaint from SBI, the CBI has registered a case against a Mumbai-based private company over allegations that the latter has caused a loss of over Rs.1,438.45 crore to SBI and four other consortium member banks.

As per CBI, the allegation against the company, which is engaged in trading ferrous and non-ferrous metal, and its promoters, is that they caused a loss to SBI and other consortium banks (such as Central Bank of India, Indian Overseas Bank and others) by diverting, or siphoning off funds, and showing sales to overseas dormant entities, along with manipulating books of accounts.

The borrowing company was also alleged to have misappropriated bank funds by giving advances to the entities which had not carried out business during last 5-9 years and provided loans and advances to its related parties. It was further alleged that the accused violated the sanction terms & conditions, CBI said in a statement.

CBI also said that it conducted searches at three places at the premises of the accused, spread over Mumbai and Pune, which led to the recovery of incriminating documents.
      
The other case was registered against a private company based at Ahmedabad, its directors and unknown private persons/public servants on complaint from Bank of India (BOI) over allegations of bank fraud of over Rs. 710.85 crore that was cause by the private company to the consortium of banks comprising of Bank of India (as the lead bank), along with IDBI, SBI, PNB and Shamrao Vithal Cooperative Bank Ltd. as well as to IFCI Ltd.

The BOI complaint stated that the said private company was engaged in the business activity of production of entire range of unmodified starch, modified starch from basic maize starch and downstream products like Liquid Glucose, Dextrose Monohydrate, Anhydrous Dextrose, Sorbitol, etc. It was further alleged that the company had lent funds to related parties & others without approval of consortium banks with an intention to siphon-off the funds and deliberately entered into non-genuine transactions with its related parties to renew/enhance its credit facilities from the lender banks.

"Searches were conducted at 7 locations, including at Ahmedabad and Pune, at the premises of accused which led to recovery of several incriminating documents, articles, some property documents and Rs 38 lakh," the CBI said in a statement.
 

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