Maharashtra: CBI Registers Case In Alleged ₹19.98 Crore SIDBI Fraud Involving Ahmednagar-Based Company And Directors

Mumbai, June 15: The Central Bureau of Investigation (CBI) has registered a case against an Ahmednagar-based private company and its directors for committing cheating, fraud, misappropriation of funds and criminal breach of trust and allegedly causing loss of Rs 19.98 crore to Small Industries Development Bank of India (SIDBI).

According to the CBI, the complaint in this regard was filed by P.K. Jha, assistant general manager, SIDBI, Bandra Kurla Complex alleging that the borrower company and its directors cheated SIDBI.

The complaint disclosed that the borrower company was engaged in manufacturing of electrical stampings, wound stator, die cast rotors used in household items and also industrial appliances.

Loan Sanction And Financial Details
The company was sanctioned a term loan of Rs 15 crore under direct credit scheme and subordinated loan of Rs 5 crore under growth capital equity and assistance scheme for MSMEs by SIDBI on May 26, 2015 for the purpose of setting up a new unit at Ahmednagar.

After classifying the account as NPA, the SIDBI in writing called upon the borrower company, directors, guarantors with regard to recover its dues.

Account Declared As NPA
The borrower company could not clear outstanding dues in time hence the account became NPA with effect from May 11, 2017. However, in spite of written communication, the borrower company, directors, guarantors failed to respond and pay dues of the bank. Hence, the bank proceeded further and the said account was declared as fraud on April 20, 2018 and was reported to RBI.

Allegations Of Fraudulent Transactions
The borrower company and its directors in collusion and connivance with other accused persons with fraudulent and dishonest intentions, entered into criminal conspiracy to cheat SIDBI by way of indulging in fraudulent transactions with associate, related entities, raised fake bills and invoices, suppressed vital information from SIDBI at the time of seeking financial assistance & disbursements, misrepresented and submitted fake and fabricated documents to SIDBI and accounting transactions in its books without there being actual receipts.

The said acts were committed by the accused persons with dishonest intentions and caused wrongful loss of Rs 19.98 crore to SIDBI and corresponding wrongful gain to themselves.

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CBI Registers Case
Based on these allegations, the CBI has registered a case and initiated further investigation into the matter.

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