CBI Books Dahisar-Based Parth Foils In Alleged ₹80.73 Crore Bank Fraud, Searches Multiple Locations

Mumbai: The CBI has registered a criminal offence against a Mumbai-based manufacturer of aluminium foils and related materials used for packaging of medicine, eatables, etc, for allegedly causing a wrongful loss to a consortium of banks led by State Bank of India (SBI) to the tune of Rs80.73 crore.

CBI Conducts Searches In Mumbai, Ghaziabad And Solan

The agency conducted searches at several places, including Mumbai, Ghaziabad and Solan (Himachal Pradesh), which led to the recovery of incriminating documents, hard disks, electronic gadget, etc, officials said on Monday.

According to the CBI, a written complaint dated June 6 was received from Prakash Bharti, deputy general manager, SBI Mumbai, against PB Dutta and his company, Parth Foils Private Limited (PFPL) having its office at Dahisar.

SBI Sanctioned ₹26 Crore In Term Loans For Manufacturing Plants

“The complainant bank sanctioned a term loan of Rs22 crore in 2009 to PFPL for setting up its manufacturing plant at Silvassa [Capital of the the Union Territory of Dadra and Nagar Haveli]. Subsequently on May 26, 2010, the bank sanctioned another term loan of Rs4 crore to the company for setting up a manufacturing unit at Baddi [in Solan district]. Due to a stretched working capital cycle, the company started to face liquidity issue and since July 2010, the account was under continuous stress,” the CBI said in its FIR.

In September, 2011, a major fire incident was reported at the Silvassa plant, which contributed 90% of the operations of the company, and it was shut down for three months, the FIR said. The total loss was estimated at Rs22 crores against which SBI General Insurance paid a claim of Rs14.97 crore, leaving a shortfall of approximately Rs7 crore, it said.

"The account of the borrower company was restructured in 2013 by carving out a working capital term loan and funded interest term loan. The company resorted to ad-hoc drawings from the consortium lenders. However, it was treated as a failed restructuring in October 2014 and the account of the company was classified as NPA on March 25, 2013, retrospectively. Subsequently, the bank conducted a fraud angle examination in respect to the account of the company, on the basis of which the SBI declared the account of the company as fraud on September 27, 2019.

“The fraud angle examination report disclosed that the company and its promoters availed the credit facility on the basis of manipulated stocks book debts statements, financial statements with inflated figures / overstating sales, income and profit in order to able to draw higher volume of amounts from the consortium banks and thereby diverted the entire loan amount without its end utilisation and caused wrongful loss by the company and its promoters / guarantors,” the FIR claimed.

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