CBI Books Nagpur Bio-Fertiliser Firm, Directors For Alleged ₹7.76 Crore Bank Fraud

Mumbai: The Special Task Branch of Central Bureau of Investigation (CBI) Mumbai has registered a case against a private company that is in the business of manufacturing of Bio-Fertilizers and Pesticides and its directors for allegedly diverting, siphoning-off the funds from the credit facilities disbursed to them and causing wrongful loss of over Rs 7 crore to the Bank of India and wrongful gain to themselves.

Account Declared NPA In 2023

According to the CBI, a written complaint of J.P. Singh, deputy zonal manager (recovery), Bank of India, was received. As per the complaint the borrower company, situated in Nagpur, was sanctioned various credit facilities with enhancement through Bank of India. It is alleged in the complaint that during the period of 2019 to 2024, the company through its directors along with other unknown persons in pursuance of criminal conspiracy diverted, siphoned-off the funds from the credit facilities disbursed to them and caused wrongful loss of Rs 7.76 crores to the bank and wrongful gain to themselves.

"It is also alleged that the borrower has inflated transaction including overvaluation of stock, recorded huge purchases without quantity details etc, diverted funds to the related parties, submitted incorrect records to the bank, It is further alleged in the complaint that during year 2022-23 the value of the creditors in the stock statements submitted to the Bank was not matching. During some months, the creditors were shown at around 65% less than that of the book of accounts," the CBI stated in its FIR.

It was observed that there are differences in value of stock, sundry debtors and creditors as appearing in the stock statement submitted to the bank and as per tally data provided to Forensic auditors. It is further alleged in the complaint that during the visit to the premises of the borrower, the forensic auditor was informed that there was no change in inventory since March 2023. However, on physical verification, the actual inventory did not match the inventory listing and was found to be significantly lower. The account had been classified as NPA in March 2023.

A case has been registered in the matter by the CBI on charges of criminal conspiracy, misappropriation of funds, cheating and criminal misconduct under the relevant sections of the Indian Penal Code and Prevention of Corruption Act.

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