CBI Probes 4 Firms, Including UK-Based Company, Over Alleged ₹94 Crore Fraud Involving India EXIM Bank's $10 Million Loan

Mumbai: The Central Bureau of Investigation (CBI) has initiated a probe against four private companies, including a UK-based firm, for allegedly causing a loss of USD 10 million (approximately Rs94.14 crore) to India EXIM Bank.

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A written complaint, dated October 22, was sent to the agency by a senior official of India EXIM Bank, Cuffe Parade. The bank alleged that the borrower company had entered into an agreement with another firm in May 2012 for the supply of machinery for its recycling project facility in the United Kingdom.

The project cost submitted by the borrower company was USD 15.90 million (approximately Rs149.68 crore), comprising a proposed promoter’s contribution of USD 5.90 million (approximately Rs55.54 crore) and the balance through a loan from EXIM Bank.

The Committee of Executives (Sanctioning Authority at EXIM Bank’s Head Office in Mumbai), at its meeting on November 8, 2012, approved a term loan of USD 10 million. Accordingly, EXIM Bank’s London Branch conveyed the sanction of the term loan to the borrower. It was further alleged that, based on the borrower company’s requests supported by invoices, the bank released funds directly to the machinery supplier company.

The bank further alleged that the machinery was not supplied and advances received towards its purchase were diverted by extending loans to related parties. The company’s account was declared a non-performing asset in 2014.

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