Mumbai: City-based company and directors booked for ₹225.62 crore bank fraud by CBI

The Central Bureau of Investigation (CBI) has registered a case against a Mumbai-based private company and its directors for allegedly cheating a consortium of banks (Central Bank of India and Punjab National Bank) to the tune of ₹225.62 crore. In its complaint, one of the banks from the consortium has alleged that the company, its promoters, directors had availed the funds in the form of term loan, cash credit, etc with the pre-planned intention of defrauding the lenders. The borrower company has its registered office at Juhu and is engaged in manufacturing and selling of high tensile alloy steel fasteners.

Central bank official filed written complaint

According to the CBI, a written complaint was received from Sridhar Sahoo – who works at the Central Bank of India's Nariman Point branch – against the borrower company and its two directors unknown public servants and unidentified for having committed offences of cheating, misappropriation of funds, criminal breach of trust and defrauding the banks.

Both banks incurred losses of over ₹110 crore each

The account of the company, held in the Punjab National Bank, was declared a non-performing asset (NPA) in March 2017, while the Central Bank of India took the same step in 2018. Both the banks had declared the accounts as fraud in 2021, and reported it to the Reserve Bank of India (RBI) accordingly. "After declaring the account as fraud, it took some time to ascertain necessary data/ information from the other lender (complainant in the case), to prepare the complaint and to take necessary steps to obtain internal approvals," the bank stated in its complaint to the CBI.

The Central Bank of India suffered losses up to ₹114.32 crore, while the Punjab National Bank's figure stood at ₹111.30 crore, the agency officials said.

Pointers:

Losses suffered by Central Bank of India: ₹114.32 cr

Losses suffered by Punjab National Bank: ₹111.30 crore

Complaint filed by Central Bank of India official

Banks declared borrower's a/c as NPA

Reported matter as fraud in 2021