CBI books Parbhani-based realty firm in Rs 17 cr bank fraud case

The Central Bureau of Investigation (CBI) has registered a case of cheating against a Parbhani based private company for allegedly causing loss of Rs 17.66 crore to Union Bank of India (erstwhile Andhra Bank).

The agency in its FIR has alleged that the accused persons had entered into a criminal conspiracy with each other, wherein the disbursed amount of term loan from the bank was diverted to the complex web of transactions to various companies/firms/persons who are related party/dummy accounts.

According to the CBI, a written complaint was received from Sanjeev Verma, Deputy General Manager, Union Bank of India, Regional Office, Amravati, requesting for CBI investigation in an alleged fraud perpetrated by a Parbhani based private company and its partners.

The firm was banking with Union Bank of India

"The firm that is engaged in construction of residential complexes, was banking with Union Bank of India (erstwhile Andhra Bank), Parbhani Branch, since November 1, 2012 and availed credit facilities of Rs 19.40 crore in the year 2014 for construction of houses, bungalows, flats and row houses at Parbhani," the CBI stated in its FIR.

As per the FIR, the account has been classified as NPA on June 19, 2018 due to non payment of overdue amount and as per the prudential norms of RBI.

The said firm and its partners in conspiracy with unknown public servants, committed an offence of fraud, criminal conspiracy, criminal breach of trust, cheating etc. to the said bank by availing and misusing the funds, thereby caused a loss of Rs 17.66 crore to the bank as well as to the exchequer," the CBI's FIR alleged.

Speaking about the modus-operandi used to commit the alleged offence, the FIR stated, "Disbursements were not in proportion to the progress of work. During the branch annual inspection 2018-19, the inspector commented on the construction of works. As per the inspection report, there is no construction work started in the site. That shows the funds were not utilised for the purpose for which it was sanctioned."