CBI registers action against private company over SBI complaint alleging loss of ₹1,438.45 crore

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The investigative agency said it carried out searches at three premises of the accused in Mumbai and Pune which resulted in the recovery of incriminating documents/articles.

The investigative agency said it carried out searches at three premises of the accused in Mumbai and Pune which resulted in the recovery of incriminating documents/articles.

The Central Bureau of Investigation on Monday filed a case based on a complaint by the State Bank of India that a private company and its directors caused a loss of ₹1,438.45 crore to the bank and four other member banks of the consortium.

The investigative agency said it carried out searches at three premises of the accused in Mumbai and Pune which resulted in the recovery of incriminating documents/articles.

The CBI added: “It has been alleged that the private company/borrower (engaged in ferrous and non-ferrous metal trading) and its promoter directors together with unknown entities have caused losses to SBI and consortium member banks. (Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce (now Punjab National Bank and Bank of Maharashtra) by embezzling/siphoning funds, showing sales to dormant entities overseas, manipulating books accounts, etc. It was also alleged that the defendant misappropriated bank funds by giving advances to entities that had not been in business for the past five to nine years and provided loans and advances to its related parties. It was further alleged that the defendant violated the terms and conditions of the sanction.”

It was also claimed that the company lent funds without the approval of the consortium banks with the intention of siphoning off the funds and deliberately entered into inauthentic transactions with related parties to renew/enhance its credit facilities with the lending banks. It was also claimed that the defendant misappropriated the value of the closing shares as well as fixed assets and thereby deceived the banks.


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