CBI books private company and directors in Rs 631 Bank of India fraud case


The Mumbai branch of the Central Bureau of Investigation (CBI) registered a criminal offense against a private company, its four directors and unknown officials for allegedly causing an unwarranted loss of Rs 631.97 crore to the Bank of India .

In its complaint to the CBI, the bank alleged that the defendants, as part of a well-woven criminal conspiracy and with dishonest intent to cause undue loss to the bank and unjust gain to themselves, have embezzled, siphoned funds amounting to Rs. 631.97 crore from the credit facilities disbursed to them and thus misappropriated the loan amount dishonestly.

According to the CBI, the company is engaged in the manufacture of industrial induction furnaces, induction heating equipment, transformers and metal refining converters. A written complaint was received by the CBI from the Deputy Managing Director of the Bank of India against the company and other accused persons, alleging an unwarranted loss of Rs 631.97 crore to the bank. “The gist of the allegations made in the complaint is that the accused entered into a criminal conspiracy during the period 2007-2013 to defraud / deceive the bank in connection with various credit facilities it has granted,” said declared the FIR of the CBI.

“The company was enjoying fund-based and non-fund credit facilities amounting to Rs 703.89 crore exclusively from the bank in accordance with the latest sanction in October 2011. The company began to face liquidity issues. in April 2011 and the company did not pay its contributions despite the restructuring of the Subsequently, the company account was classified as NPA by the bank in December 2012. According to the forensic audit of the company carried out by the bank, the company has been involved in embezzlement, siphoning funds through its subsidiary, associated companies with common directors, ”added the FIR.

The bank also alleged in its complaint that the company also engaged in transactions with suspicious dealers involved in issuing bogus invoices without delivering goods. The CBI registered a case under Sections 120B (Criminal Association) and 420 (Deception) of the Indian Penal Code and relevant sections of the Corruption Prevention Act.

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Posted on: Wednesday January 05, 2022 5:43 PM IST

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