CBI Initiates Probe In ₹11.36 Crore SBI Bank Fraud Case Against Mumbai-Based Agro Firm

Mumbai, June 30: The Special Task Branch of the Central Bureau of Investigation (CBI), Mumbai, has registered a case against a private company and its directors for allegedly causing a loss of Rs 11.36 crore to the State Bank of India (SBI).

Alleged Fraud Under Investigation

According to the CBI, the company, situated in Vikhroli, was engaged in the business of trading premium-quality agro commodities such as groundnuts, grains and spices in the domestic market and for export.

The alleged fraud was committed during the period from 2018 to 2022. The borrower company was sanctioned a cash credit limit of Rs 9.50 crore in June 2018.

The company was also sanctioned a standby line of credit of Rs 1.40 crore for a period of 90 days in March 2019, which was repaid in August 2019.

The credit facilities were renewed in November 2019 with a fresh sanction of a standby line of credit of Rs 1 crore. These facilities were restructured in November 2020.

As per the stock and receivables audit report, it was observed that the movement of turnover, collection of payments, sales and purchases were carried out with the same party or inter-party entities, and the valuation of collateral security had declined to Rs 4.65 crore from Rs 8.57 crore, agency officials said.

Audit Flags Irregularities

"The erosion of property valuation is more than 45 per cent. As per the stock audit report, the genuineness of business transactions could not be ascertained due to reasons such as no proper place of business, common party debtors, no receipt towards outstanding bills but receipt on account, and directors holding interests in other agro companies. All the stock available is more than 10 months old and is not saleable, as the stock has expired and is not fit for human consumption," said a CBI official.

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Based on a complaint filed by the bank, the CBI has registered a case on charges of criminal conspiracy, cheating and criminal misconduct under the relevant provisions of the Indian Penal Code and the Prevention of Corruption Act.

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